Moved states as federal employee; transportation costs reimbursed. No state taxes were paid, are these wages to be allocated to my new state??

[kittyobradovich]

(as income in my new state). They're not really income, but rather a benefit?

[ThomasM125]

When you say your transportation costs where reimbursed, I assume that means they were paid for under an accountability plan wherein your submitted your expenses and were reimbursed dollar for dollar for them. 

If that is what happened, then you should not have been taxed on the benefits and they should not show as wages in box 1 of your W-2 form. In that case, you would not have to report the reimbursement on your federal or state tax return.

If the reimbursements were taxable because you did not have an accountability plan, then they should show in box 1 of your W-2 form and all you need to do to report them on your tax return would be to enter your W-2 form into TurboTax.

[kittyobradovich]

@ThomasM125  I'm a federal employee who was directed to relocate for my job, and I received a W2 with sections 1-6 filled out. I'm good with entering this in for federal taxes, but since no state taxes were paid, I'm wondering if I need to account for this W2 on one of my two state tax returns that I have to complete. If so, which one (the one I left from or the one I moved to)?

[DeanM15]

Generally, if you move from one state to another, you will need to pay state tax as a part-time resident in two states.

If there is no state information or withholding on your W2, you will have to calculate how much income was earned in each state. You can do this easily with TurboTax. Start each state return and declare yourself a part-year resident. Then walk through the questions dividing the income between the two states. 

Find more info here.