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Resident status question

TurboTax reeks me I need to do part year resident returns for NJ and AZ since I moved to AZ in July. I get that but I think maybe I answered questions wrong because it wants me to do a resident and nonresident return for NJ plus the AZ. 

I worked for the same company all year remotely. My employer changed my state to AZ effective as of my move date so after that date, taxes were only taken out for the date of AZ and prior, only for NJ. But I have another w2 from a second job where the whole year of tax was taken out for NJ. So when it asked me if I earned income in NJ while a resident of AZ I said yes because I thought I’d have to split that income between the two states so AZ gets its fair share and NJ would as well. Was that incorrect.

For all of my unearned income from interest and dividends I took the totals and divided by 365 then multiplied by the number of days I lived in each state. We sold a NJ condo in Sept while already having moved to AZ. Turbo asks if any of our properties were sold while we were non residents. I said yes but maybe that is wrong because the capital gains (this was a seasonal rental we used as well part time) look possibly taxed by both states?

Complicated!

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3 Replies
MaryK4
Expert Alumni

Resident status question

No, from your description, your entries sound correct- New Jersey requires Part Year residents who had nonresident income to file two separate state returns (there are only a few states that require multiple returns in the same year).  You can check your Arizona tax return for a credit for the capital gain.  (Arizona Form 309), but if you did not create the NJ Nonresident tax return, you may need to enter the credit after you do the return.

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Resident status question

So I earned income in Arizona for just the sale of the condo and the one W2 that I need to split between the states (as well as the unearned that I already divided up)?

DMarkM1
Employee Tax Expert

Resident status question

It appears you are correct.  For AZ you have a W2 that has already been allocated for you, another W2 that you have to allocate some income to AZ along with the unearned income that you allocate based on resident state time, and then the condo sale while you were a resident of AZ.  

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