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New state/bought a house

My husband and I bought a house in NC in February and began moving into in May.  We previously lived in Florida, so did not have state taxes.  His employer will withhold the NC tax, but mine will not.  How do we determine:

  • Do we need to make changes to our Federal Withholding?  (We owed quite a bit last year.)
  • Should we "double up" on state withhold on my husband's taxes?  If so, how do we calculate how much to withhold?

    Thanks!
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1 Reply
Loretta P
Employee Tax Expert

New state/bought a house

Since you moved in the middle of the year you would be filing a part year resident return for NC.  You will need to prorate the income earned during the time you lived in NC.  

 

You have options:

  • You can have your husband's employer take out additional state withholding
  • You can make estimated payments to the state based on your income if your employer will not withhold and submit the state taxes for you.

TurboTax has two calculators to help you make these decisions.  

TurboTax's W-4 Calculator

TurboTax's Tax Caster tax calculator

 

You can then use the results from the calculators to complete a new W-4 form for your husband's employer.

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