I moved from Chicago to Alexandria Va, but works in Washington DC, how does that affect my tax deductions? Will I have to pay taxes in two states? Is there certain deductions I should be more concerned with to ensure I will not owe at the end of the year…
my new job is suppose to pay me $87,123 a year. I don’t want to owe the IRS. (No dependents) please advise…..
To add to Dennis' answer, be aware that Virginia and Washington DC have reciprocity for income tax. This means that if you live in Virginia and work in DC, you only pay tax in Virginia. So it sounds like for this year, you would have a part-year return in Illinois and a part-year return in Virginia. Going forward if nothing changes you would only need to file in Virginia.
Awesome! Thanks a lot…
if I may, you read my post, the amount of money that I’m making, can you provide a recommendation of about how much extra money I need to come out of my check to ensure I won’t owe at the end of the year…
There are a lot of variables to try to get a correct answer there. Are you referring to federal taxes or state taxes? Did you work in Illinois before moving? How much did you earn in Illinois, and how much taxes were withheld there? When do you start the job in DC?
Your right. Info id have to share offline. Anyways thanks a million this was definitely helpful…
You're welcome dwinters1! Glad we could help.
For your Federal taxes you might want to try using TaxCaster: https://turbotax.intuit.com/tax-tools/calculators/taxcaster/
It can help you estimate if you're on the right track with sufficient withholdings. Have a great day and good luck at the new job!