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Old 12-16-2010, 11:23 AM
PDD PDD started this thread
 
Location: The Sand Hills of NC
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I have been using Turbo tax the last couple of years and was satisfied. But now I have relocated from NJ to NC
My question is do I file state returns in both states since I lived six month in NJ and now six months in NC?

Thanks,
PDD
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Old 12-16-2010, 02:24 PM
 
Location: Lexington, SC
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Yes. You will need to file a separate return for each state. I use Turbo Tax too and made a similar move several years back. You will need to keep your income info separate but Turbo Tax will have no trouble filing in both states.
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Old 12-16-2010, 02:24 PM
 
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If you earned income from both states, and both states have an income tax, then yes, you will need to file returns for both states. Both states should have a Part-Year Resident/Non-resident form, which either on the form or in the instructions have formulas and tables to calculate how much in income and deductions you have to report for each state. Some versions of tax software support filing in multiple states, but it may be an upgrade from your current version and/or there may be an additional fee for filing to a second state.
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Old 12-16-2010, 05:24 PM
PDD PDD started this thread
 
Location: The Sand Hills of NC
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OK thank you,Lexington and Mike
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Old 12-17-2010, 09:39 PM
 
Location: Victoria TX
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Quote:
Originally Posted by Mike From NIU View Post
If you earned income from both states, and both states have an income tax, then yes, you will need to file returns for both states..
You are liable for state taxes in the state you live in, not the state you earned the money in. I, and half my co-workers, lived in Missouri but worked in Kansas. Our accounting department withheld according to our declared state of residence. If you change states during the year, I believe (but am not certain) that you are taxable in the state of residence on December 31. There are many itinerant workers who earn money in 10 or 20 states during the course of a year, but are taxable in only the one they declare to be their state of residence.

However, if state tax was deducted by a state other than your taxable residence, you may need to file a return in that state in order to get the withheld taxes refunded,
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Old 12-18-2010, 10:58 PM
 
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Quote:
Originally Posted by jtur88 View Post
You are liable for state taxes in the state you live in, not the state you earned the money in. I, and half my co-workers, lived in Missouri but worked in Kansas. Our accounting department withheld according to our declared state of residence. If you change states during the year, I believe (but am not certain) that you are taxable in the state of residence on December 31. There are many itinerant workers who earn money in 10 or 20 states during the course of a year, but are taxable in only the one they declare to be their state of residence.

However, if state tax was deducted by a state other than your taxable residence, you may need to file a return in that state in order to get the withheld taxes refunded,
Actually, this may vary, but you did bring up a good point. Many states have reciprocal tax agreements with bordering states that allow, per your example, a resident of Missouri to work in Kansas and to only have withheld and owe taxes to Kansas. However, this reciprocal agreement is not universal, and is generally limited to border states. In the OP's example, I would be very surprised if NJ and NC have reciprocal agreements. However, itinerant workers who earn wages in 20 different states often due owe income taxes to many, many states.

Most states that have income taxes have personnel who monitor what professional athletes play away games within their borders in order to make sure that they file state income taxes there. If a player who makes $1 million per game (some NFL players, for instance) plays a game inside your borders, and you have a 5% tax rate, you can demand and expect a $50,000 windfall from that one player for that one game. It's one reason why professional sports accountants 1) need to be so darn good and 2) keep detailed track of what income is earned when and where, down to the day.
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