State Taxes after Move

Forum|Forum|7 years ago
April 2, 2019
2 replies
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I moved from DC to California this year. While trying to complete my taxes it shows I owe DC state taxes for the time after I moved. Since starting my job in California I've been paying CA state tax. Any help?

N

NCPERSON1

did you correctly respond in the 'personal section' that you moved in 2018 and the date of your move?

look closely on the CA form; there should be a credit for what you paid to DC.

As long as you have the credit on the CA form, I would trust that TT is calculating it correctly

V

Viking4296

Employee

Hello,

I moved from TN to NC on December 1, 2018. TN does not have state income taxes, and therefore I cannot process that section. When I worked my State Income tax within TT, an amount 4x greater than the 5.99% tax rate for the month I was a resident of NC was calculated, for which it says I owe NC? Seemingly NC is taxing me a percentage of my total income, above and beyond that which they would a full time resident on a per month basis. Does this seem right?

Thank You

N

NCPERSON1

go into the personal section and ensure you correctly answered the questions about your residency

your state of residency on 12/31/18 should be NC

it will ask if you lived in NC the entire year and you are to answer 'no' and then list TN and 12/1/18 as the date you moved

it will ask if you lived in any other states and I assume you will answer 'no'

NC should be prorating your income so only 1/12 of the AGI that pulls from the federal return is subject to NC tax.

I dummed up a return and stated that there was $60,000 of income for the year which broke down on the W-2 to $55,000 in TN and $5,000 in NC. Did you list your income on the W-2 correctly from your employer? one W-2 should reflect TN and the other NC in Box 15

TT reduced the $60,000 by $8750 (the NC standard deduction for single) and then took 1/12 of that number or $4269 was the NC income for the year and correctly applied 5.5% tax rate

so i suspect something is incorrect with either how you keyed in the W-2 or set up the personal section with your move date. Suggest focusing there to determine the issue,

P

PaulaM

Employee

@patjo07x The order that you prepare your state returns is important. Prepare the DC return first before completing your CA return.

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