Is Money earned in one state taxable in another?

Question

I lived in a state without state income tax and moved to state which does have state income tax in March of 2006. Is the income from the first state taxable in the second? In other words, do I have to pay tax on money I didn't earn in state?

Answer 1

I don't know all the tax laws for all the states by heart,

but you would most likely file as a Part-Year Resident in the state you moved to,

and only the income you earned while you were a resident of the state you moved to would be taxable to that state.

Check the state website for the state you moved to and look for a Part-Year Resident income tax form. A lot of states use the same tax forms for nonresidents as they do for part-year residents so the form might have both titles on it.

Answer 2

You'll need to file a part year state tax return for the state which has income tax. Let's say that you earned $7,000 in Texas (no state income tax) through March 31, 2006. Next, you earned $50,000 in Arizona (a state that does have income tax). You'll bring forward the total amount of income you earned ($57,000) to the Arizona return. Then, you'll need to file an additional return to AZ, showing how much should be taxable in AZ. Kind of a pain, but it would be worse to pay tax on money that shouldn't be taxable in that state.

Hope that helps!

Answer 3

You may have to pay taxes on that money you earned before March 2006. I was an AL resident but I lived and worked in TX for a few years while I attended college. AL has income tax but TX does not. Because I was an AL resident I had to file AL state income tax returns--and I had to pay income taxes on the money I'd earned tax free in TX all year. It sucked.

I think you usually have to claim all income earned for the year in the state that you reside in as of December 31 of the calendar year. So if you worked all year long in TX (no tax) but you moved to AL and transferred residency on Dec 30, you'd have to pay AL state income tax on all the money you earned in TX that year.

But check with an accountant, obviously.

Answer 4

If you didn't lived in the second state when you made the income, you shouldn't have to pay them taxes on it.

When you file your state return, mark it as "part year resident". You should only be paying taxes in the second state on money you made after you moved there.

Answer 5

No you have to file for each state seperately. That is if each one has a state income tax. Some states, like Tennessee, do not have state a state income tax.

Answer 6

the alternative to giving the tax credit, is having human beings no longer artwork in any respect with the intention to assemble sufficient welfare to feed their little ones. on an identical time as you're able to be able to think of that's arbitrary, curiously you're actually not raising little ones with a minimum salary paying job. because of the fact working 40 hours a week nevertheless isn't sufficient to grant for a family members the tax credit became created to assist those families keep working and not supply up thoroughly and take a seat a house to assemble. i will agree there are people who do abuse the equipment (particularly some human beings) yet that does no longer propose the government could punish honest, annoying working voters.

Answer 7

no you do not have to pay taxes if you move from one state to another. only if you live in 1 state and work in another

Answer 8

no it isnt.