My wife and I lived 9 months of 2016 in TN and then last 3 months in Iowa. For state tax purposes, do we file two different state returns?

[b4523]

TN has no real state income tax; Iowa does.

[ToddL]

Did you move to Iowa permanently and are you working there?

[b4523]

Yes, I am

[b4523]

I should say that I worked in 2016 in Iowa; my wife didn't start working here until 2017

[ToddL · Accepted solution]

You will file a part-year resident Iowa tax return.

In the Personal Interview:

1. Enter Iowa as your state of residence on December 31, 2016;

2. Answer "Yes" when asked "Did you live in another state in 2016?" That would be Tennessee.

The program should prompt you to prepare the Iowa return and you'll have an opportunity to allocate your income and deductions between the two states (Iowa and Tennessee)

[b4523]

Thanks for the answer; very helpful!