Question

Confusing State taxes while moving

Forum|Forum|4 years ago
July 23, 2021
1 reply
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Hi,

This year I'm moving from MN to AZ to start a new job. I'm starting a new job and new pay in AZ. I'm filling out the W-4. However, I'm also required to fill out a W4-MN which would allow MN tax to be withheld on the work I do in AZ. I'm asked to choose the number of allowances for W4-MN. This part is very confusing to me.

Is my MN tax supposed to be withheld on my AZ work and pay ? I thought, once I move to AZ, I shouldn't have to pay MN taxes. Why am I paying MN taxes on AZ work and pay ?

Critter-3

Once you move your AZ income is only reported on the AZ return. You will file 2 part year returns ... one in each state and allocate the total income to the states where the income was earned. You do not need to have MN taxes withheld from an AZ wage. And FYI ... AZ withholds at preset amounts so ask the payroll dept to assist you in filling out the withholding form.