Question

Moved from IA to WI

Forum|Forum|4 years ago
July 28, 2021
1 reply
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Was working remotely in IA for a company based in WI from January to June. At the time paying income tax to IA. Now moved to WI and beginning to pay taxes to WI. What do I need to know about filing for 2021. Also, am I eligible for any credits for moving costs?

slaudenslag

Your tax filing for 2021 will included your Federal return and part year resident returns for IA and WI. It sounds like your company's payroll department has done a good job and is properly withholding taxes based on your residency. Because of this, your W-2 will correctly reflect income and taxes withheld for each state. When using TurboTax, these amounts automatically transfer to the correct state returns so it should be very simple.

If you have other income such as interest, dividends, stock sales etc., you will need to allocate that income based on the percentage of time residing in each state. Again, TurboTax will walk you through this allocation.

Lastly, to address your question regarding credits for moving expenses. Unfortunately, moving expenses are no longer deductible for non-military citizens. This change was made effective for 2018 taxes via the Tax Cuts and Jobs Act (TCJA).

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