How To File Taxes If You’ve Lived In Two States (2024)

FAQs

How To File Taxes If You’ve Lived In Two States? ›

You will need to file part-year resident returns in both states. You must file separate state returns if you've had wages, self-employment, or property income in both states. Before you begin, check the residency rules in each state, as requirements can vary.

For the year of your move, you'll file a part-year resident tax return in each state, but don't worry – you won't have to pay double the state tax. Each state taxes the income that was earned in that particular state, but most states don't tax the income earned in the other state.

Answer Yes and a new section will appear asking for your previous state of residence. Select the other state you lived in. Fill out the date of when you moved to your current state. If the rest of your information is accurate, select Continue.

You can be a resident of two states at the same time, usually by maintaining a domicile in one state and spending 183 days or more in another. It is not advisable, as you will be liable to file income taxes in both states, rather than in only one.

If an employer has operations in more than one state, income tax might need to be withheld for multiple states. In fact, at times the employer might need to withhold income tax for multiple states from the wages of one employee.

Legally, you can have multiple residences in multiple states, but only one domicile. You must be physically in the same state as your domicile most of the year, and able to prove the domicile is your principal residence, “true home” or “place you return to.”

The state where the taxpayer maintains or owns business interests. The state where the taxpayer holds a professional license or licenses. The state where the taxpayer owns investment real property. The indications in affidavits from various individuals discussing the taxpayer's residency.

You need to file 2 part-year state tax returns for 2023, since you moved and lived in 2 states during the tax year. Basically, you need to set up your move dates in the personal section so that TurboTax knows what type of returns to generate. TurboTax will follow state tax law when preparing your returns.

The TurboTax web page is listing an extra state purchase as being $45 (plus sales tax).

Can I have two permanent residences? ›

The question here is can I have permanent residency in more than one country? Yes. You can.

The common question is, “What does domicile mean?” Domicile refers to a person's permanent legal residence, which is the place where they have the most significant connections, such as family, property ownership, and voting registration. Residency, however, refers to where a person lives, temporarily or permanently.

You are a dual-status individual when you have been both a U.S. resident and a nonresident in the same tax year. Dual status does not refer to your citizenship, only to your resident status for tax purposes in the United States.

Call the IRS toll free at 800-829-1040 or make an appointment to visit an IRS taxpayer assistance center (TAC). The IRS will send your employer a letter requesting that they furnish you a corrected Form W-2 within ten days.

The Failure to File penalty is 5% of the unpaid taxes for each month or part of a month that a tax return is late. The penalty won't exceed 25% of your unpaid taxes.

If you worked in two different states, you'd likely need to file a non-resident tax return to pay state taxes in the non-resident state. Check if the state you're living in has a reciprocal agreement with the state you're working in. If it does, you won't have to pay taxes in the state where you work.

If you earned wages in IN but are a resident of IL, your income will be considered IN-source income and you would need to report this income on an IN nonresident state income tax return. You will want to contact your IN employer regarding your state withholdings. (IN and IL do not have a wage reciprocal agreement.)

An easy allocation method is to divide the year's interest by 12, and then multiply the figure by the number of months you lived in each state.