I recently retired on April 1st 2021, in Seattle, moved to New Mexico and I am wondering about state taxes, which I know nothing about...
Will I have to file in both states this year ?
Congratulations on your retirement!
If you moved to a new state during 2021, you'll normally file a part-year return for each state you lived in during 2021, assuming the state(s) collect income tax. Washington state does not collect income tax. You will need to file a part-year resident tax return in New Mexico if you meet any of the following conditions:
- You file a federal return;
- You want to claim a refund of any New Mexico state income tax withheld from your pay, or
- You want to claim any New Mexico rebates or credits.
Any retirement account distributions received during your New Mexico residency will be considered New Mexico sourced income.
**Mark the post that answers your question by clicking on "Mark as Best Answer"