Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Our family moved from IL to AZ in May 2008, where we live now. We overlooked that my husband's company in AZ kept paying our state tax to IL, even thought we have moved to AZ. So we paid IL state tax from May to end of Aug in 2008, while lived in AZ since May. (For over 3 months we paid IL tax while we should have paid AZ tax. )
Now it's tax return time! I am stumped with my state tax return. Should I filed IL state tax return? AZ state tax return? Both? How do I indicate of which state we have been residents in 2008?
Please help! I hate to go to a tax preparer for this. I much rather do this myself than pay $200 to have someone file it for me.
My own experience with NC/SC income tax is you state income tax is based on where you lived as a percentage - you moved in may so 5/12 of your tax [you get the idea you would have to figure out the % of days in each state] would be in IL and 7/12 in Az -
You will have to file two tax returns and they should have calculations for part year residents.
I am no tax professional - just someone who worked in NC and lived in SC for years and had to file dual returns. Not rocket science but extra forms and tax preparers usually charge by the form.
I'm no tax expert, but it seems like you have to determine which of the two states are considered the full-time, which at first glance is Arizona, but many states have their own rules. If that is the case, you will still have to file a part-time resident Illinois state tax form. You will most likely get money back since you overpaid. However, as I understand correctly, your husband is in the same company even with the move. If so, his company screwed up and should have paid Arizona taxes starting in May rather than August. Maybe you can check with HR to help you figure it out so that you won't have to pay a penalty for underpayment of taxes in Arizona, if it exists. Good luck.
You will need to do your taxes as a part-year resident for both states. I moved from CA to MA in 2007 and had to do taxes for both and they figure it out by percentage. I use a tax software and it figures out the numbers for you. This year again I will be doing part-year resident for MA and NY since I moved again this year....
Now the second part of my trouble is, how do I know my percentage to each state? We lived in IL for 4.5 months in 2008 (Jan to mid May) and in AZ for 7.5 months. At the same time we paid IL state tax for 8 months (Jan to end of Aug) and AZ state tax for 2 months (Sep and Oct.) Any idea? Suggestion?
You get the tax forms and worksheets from each state and do the calculations. What you paid is irrelevant - figure your taxes based on the rules in each state and refund and what you owe.
You MAY get a refund from IL - but who knows? You have to figure what you OWE them (based on the months you had residence there) and then look at what you paid.
Similarly, you're probably going to owe AZ. But you won't know until you do the worksheets.
You will file 3 forms: Federal, IL, AZ.
good luck - I moved from MI to OH in '07 - and we had to file 3. My husband wasn't able to join me in OH until last year ('08) - so more than likely we'll have to file 3 for '08 as well.
Finally (knock on wood and end of job changes) we should only have to file 2 for 2009 (next year!).
I think I figured this out now, finally.
We need to file 3, like some of you said: US, IL and AZ.
Most likely, we would get a little back form IL, because we lived there for 5 out of 12 months and paid 8 out of 12 months. So in a way we paid more than we needed to.
Then, we would need to pay AZ because we lived here for 7 months and only paid 4 out of 12 months.
Thanks for all your input. You have helped me greatly!
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
