Complicated state taxes

[Delawaredave5]

Any good websites for "complicated state tax situations" ?

Daughter and husband lived/worked in 2 different states for half year, then moved / started work in 3rd state together (residence forward).

And I know, "accountant might be good idea".

Thanks !

 

[RobbieB]

Most tax software can handle this. Basically a pro-rata thing.

 

[jebmke]

Each state probably has instructions on how to prepare a part-year resident return for that state. I'd just follow those and make sure the software generates the result I expect.

 

[Gumby]

I don't know if this is true for every combination of states, but when I worked in New York and lived in Connecticut, I got credit on my CT state return for the income tax I paid to NY. So I did my tax returns in a specific order - first Federal, then NY state (which had the higher rate for state taxes), and CT last.

 

[Delawaredave5]

Thanks !

 

[jebmke]

I don't know if this is true for every combination of states, but when I worked in New York and lived in Connecticut, I got credit on my CT state return for the income tax I paid to NY. So I did my tax returns in a specific order - first Federal, then NY state (which had the higher rate for state taxes), and CT last.

The order may not be relevant for part-year returns. Your NY return would have been a non-resident return, correct? In that case, it can make sense to finish the NR return first.

 

[scrabbler1]

The order may not be relevant for part-year returns. Your NY return would have been a non-resident return, correct? In that case, it can make sense to finish the NR return first.

Agreed. I worked in New Jersey for 7 years and live in New York, so I had to complete my NJ non-resident return first in order to determine the resident credit I could claim on my NY return. But, when my ladyfriend moved from Kentucky to New York in 2004, she had to file 2 part-year resident returns, one for each state. The Resident credit was not relevant, so the order we completed those 2 forms did not matter.

 

[Gumby]

The order may not be relevant for part-year returns. Your NY return would have been a non-resident return, correct? In that case, it can make sense to finish the NR return first.

Yes, my NY return was non-resident. The young wife worked only in Connecticut, so we had both NY and CT specific income to account for. I would do the NY return first, then apply the credit to our CT return.

 

[jim584672]

I let Turbotax figure it out. I had to buy two state returns. Live in NY, work in NJ.