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Level 2
posted Feb 28, 2020 9:28:48 AM

Husband started job in TX in January, but family stated in MN to sell home until March. Should dates of residency overlap, match job, or match home sell/purchase?

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3 Replies
Level 15
Feb 28, 2020 9:36:45 AM

For taxes, residency in MN can end any day "AFTER" the last day money was physically earned in MN.

Since TX does not tax personal income, start of residency in TX is irrelevant. But it can NOT be the same day or before the last day of MN residency.

Basically, you'll be filing a part-year resident return for MN so that you don't pay that state taxes on money earned in TX.

 

Level 2
Feb 28, 2020 8:32:53 PM

Thanks. @Carl  That helps. A little more detail:

 

We are struggling with the Tax and Deductuion Worksheet that calculates the sales tax paid in each state. How do we reconcile that we were paying sales tax in two states simultaneously? TurboTax is flagging it as an error.

Level 15
Feb 28, 2020 8:47:56 PM

How do we reconcile that we were paying sales tax in two states simultaneously?

This is gonna sound "wrong", but bear with me.

You can't pay sales tax in two states "simultaneously". It's physically impossible to be in both states "simultaneously".

Assuming you're letting the program figure your sales tax deduction for each state, you have to ensure you tell the program two pecies of information for each state.

First is the date range you earned income in each state. Since you moved, those dates can't overlap.

Second, the income earned in each state. The total of those two incomes can not exceed your total earned for the tax year either.

Now the above is a wild guess, as I don't know exactly what error you're getting or where in the program you're getting the error. (On the final review I would expect, but I could be wrong)