State to State - W-2 Woes!

[LadyGrayHat]

What is the best way to file, when you move states? I'm in the process of leaving South Carolina for GA. I will have worked as a contract hire 1099, and will have W-2's for SC. IS it better to file for each state individually? Is that even possible? There a lot of jaron in the middle! Thanks for the help! 

[xmasbaby0]

If you move from one state to another during the tax year then you will have to prepare two state tax returns.  Each one will be a part-year return on which you will enter the income you received while you lived in the state.   If your W-2 income was earned while you lived in SC, then that W-2 income will go on a SC return.   If you are an independent contractor when you move to GA, then you will file self-employment income in GA for part of the year.   And of course, ALL of the income will go on your federal return.

[Corrlich44]

Hi,

In your situation, you will always be preparing your last home state return, last. That means, any income that is earned or deduction incurred in a given state will be allocated to that state in the order of which it was earned and then taxed on that state tax return. From there, any additional state tax return you will have to prepare, will and hopefully, receive state Credit for Tax Paid to Other Jurisdications (SC) to applied on your Georgia tax return. You most likely will be eligible to pay signficantly less income tax on your final state tax return (GA) , as long as less to no income is earned in Georgia.