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March 25, 2021
Question

I left a job in Feb and moved states. I received continued checks due to sick pay and differential pay until December from the job Which state do I declare the income?

  • March 25, 2021
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March 25, 2021

You must file a state return in the issuing state from which you received the income, for that income. All your income must be declared on your Federal return, of course. If the issuing state where you would file has no income tax - like Texas, for instance - you would ignore that income for  your current state return.

March 25, 2021

In general, when filing a part-year return, most states will tax:

  • all the income you received when you were a resident of that state; plus
  • the income that came from sources within that state while you were a nonresident.

Let's say you lived in State A at the beginning of the year.  They will tax all the income you had through February plus the wages from your old company, which is located in State A.

 

State B will tax you on all the income you received from February on.

 

Prepare the return for State A first.  Then any taxes you paid will flow to State B's return for a credit.