Filing 2020 Taxes Question (moving between states)

[SuiteLiving]

Originally Posted by Okey Dokie

Not if you had both states withholding taxes at the same time.

Let’s say you make $1,000/month, for 6 months you lived and worked in Illinois. For four months you worked in Indiana, lived in Illinois and had taxes taken out for each state. Then two months you lived and worked solely in Indiana.

That’s $10,000 Illinois wages and $6,000 Indiana wages showing on your W-2s, but you really only made $12,000.

Are you filing in both states as partial year resident?

Probably going to have to manually figure from your pay stubs how much you earned while an Illinois resident
and how much you earned as an Indiana resident.

I've never seen this happen. From the company's perspective, they will withhold based on where the individual is working (or their home state if there's a reciprocity agreement between the working state and the home state). I've never encountered a situation where an employer would withhold taxes for 2 states on the same wages as it would expose the employer to liability for improper withholding unnecessarily.

[Okey Dokie]

Originally Posted by SuiteLiving

I've never seen this happen. From the company's perspective, they will withhold based on where the individual is working (or their home state if there's a reciprocity agreement between the working state and the home state). I've never encountered a situation where an employer would withhold taxes for 2 states on the same wages as it would expose the employer to liability for improper withholding unnecessarily.

I have also never seen two different state taxes being taken out of the same check, but I suppose if a company allowed it, it could be done. I spent most of my working life living in Kansas and working in Missouri and vice-versa. Always had the state tax of where I was working withheld. Got a credit on my resident state return for taxes paid to the work state.