If you moved from one Check this state to another during the tax year, you’ll likely need to file part-year resident returns in both states.
Here’s what you need to know
Each state has its own rules for determining residency status. Generally, you’re considered a part-year resident if you were a resident for only part of the tax year. In addition, the state you move to generally considers your continued stay after December 31 to be part of the day count determining your residency status.
In most cases, you should file part-year resident tax returns in both your former and new states. This involves reporting the income you earned while you were a resident in each state.
Some states require you to report all your income for the year and then prorate the tax based on how much income was earned while you were a resident. Other states only require you to report the income earned while you were a resident.
The method for calculating your partial state taxes can vary significantly between states. Some states will require you to calculate the tax as if you were a full-year resident, then adjust based on the portion of the year you were a resident. Others will only tax the income earned during the period of residency.
Reciprocity agreements do not generally cover part-year status. This means that you should have withholdings from each state based on the day you moved and the next day in your new state.
When preparing to file, it’s important to gather all your documents related to any earnings as well as your residency periods in both states. Work with a Tax Pro who can help ensure that you correctly apply the rules for each state and take advantage of any available credits or deductions.
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