Moved from a State that does not have State Income Tax to a State that does. We are getting ready to file our taxes, and were told that our income from the State that we lived in will be taxed here, my question is why? We did not live or work in this State, moved here in December 2006. No income here yet. Still looking for employment. Thank You
2007-03-13 03:34:16 · 7 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
some excellent answers, I appreciate that you are taking the time to answer.
Moved from Texas (no State Income Tax)
2007-03-13 04:00:00 · update #1
Don't always believe "THEY" as they usually have no idea what they are talking about and just use words to fill empty space. If you moved then you would only pay taxes on income earned in the state that you moved to. If you moved in December and had no income then there is no reason to file a return in new state of residency. Get a state tax booklet for your new state and read it carefully; especially the part-year resident section. Contact me if you need anything further as I have done tax work for more years than you are old most likely.
2007-03-13 03:41:31 · answer #1 · answered by acmeraven 7 · 1⤊ 2⤋
Whom ever gave you that advice was WRONG WRONG WRONG and definitely HAD NO KNOWLEDGE OF PART-YEAR RESIDENT RETURNS.
You need to do a part-year resident return for the state you moved into. You
report all of your income, in general, as you would on your federal return, to a column marked Federal on your state return. You then mark zero (0) in the state column. Zero divided by whatever is still zero.
NO TAX WILL BE DUE.
NADA, NOTHING.
Let a professional do the work this year - part year resident returns are often complicated - not that your's is complicated, but a professional will know what boxes to check off, and file your return appropriately.
2007-03-13 11:27:54 · answer #2 · answered by bold4bs 4 · 1⤊ 0⤋
most states with income taxes will only tax you on the income that you earned in their state, plus a portion of your other income such as interest, dividends, etc. look for your new state to have a tax form for "part-year" residents. you will probably have to report all of your income and then put in the to and from dates that you lived there. the dates are used to pro-rate your total income over the year.
2007-03-13 05:39:45 · answer #3 · answered by Ovrtaxed 4 · 1⤊ 0⤋
You need to file in the state you lived in. It will ask you how long you resided there and your earned income during that time.
You most likely with not be taxed on your earnings from the other state.
Be sure to look into moving deductions.
2007-03-13 03:42:39 · answer #4 · answered by Robert 2 · 2⤊ 0⤋
You will not be taxed in the state you moved to if you did not earn income there.
2007-03-13 03:45:00 · answer #5 · answered by csucdartgirl 7 · 1⤊ 0⤋
file what you earned in your current address for 2006
if did not work at current add in 2006 then no can file
my opinion
BTW
what state dont charge income tax
I wanna move there
2007-03-13 03:43:35 · answer #6 · answered by Anonymous · 1⤊ 0⤋
Call your state representative (senator, congressman, etc..), and they will guide you in the right direction.
2007-03-13 03:42:51 · answer #7 · answered by CJ 4 · 1⤊ 4⤋