Potential Move from WI to MO

[shareintl]

How would a move to another state either end of 2023 year or sometime next year affect my taxes?

I have been in WI many years with either no job but self-employed small business or lately W2 for hourly and a very small business reported.  For 2023, I have a new W2 just for local place in Milwaukee County and a VERY small business I may still report (especially if I do some work in Nov-Dec).  I'm currently on a leave of absence in Saint Louis MO and considering in a necessary move before end of this year if should be to MO -- now or next year.  

[TimS5]

Hi Shareintl

The move from WI to MO has no effect on your federal taxes, but will effect the filing of state taxes.  Income earned in WI, whether it is reported on your W-2 or from your self-employment, will be taxed in WI.  Income earned in MO, again whether reported on a W-2 or from your self-employment, will be reported in MO.  Each state has it's own specific reporting requirements related to filing.  For example, if your Missouri adjusted gross income is is less than the amount of your MO standard deduction plus exemptions, you may not need to file.  However, depending on your income in WI, you may need to prepare a MO return to see if you need to file as you start your Missouri return with your Federal Adjusted Gross Income.  

[shareintl]

Thank you.  

So if I understand right would depend most likely when I file (now always through TurboTax) on WHEN the move takes place, right?    If the move is near the end of the year..... won't have enough income either way in MO for the filing; but if the move is earlier in the next year then it would be split state tax filing for the time in WI and time in MO, correct?

[Sean Enrolled Agent]

Hello Shareintl, 
Great follow up question!

When you move does matter, but it depends on the type of income you are reporting.
If you have interest, stock sales or other types of non W2 income, you will still need to allocate that particular income between the two states. It could be that one state reports 95% of the income, and the other state only 5%. However, you should still allocate the income received from other sources besides your W2 between the two states.

Thanks,
Sean