Question

double tax state income before move

Forum|Forum|3 years ago
April 12, 2023
1 reply
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I changed jobs and moved from NM to UT in 2022. I worked remotely for my employer in UT but lived in NM from February to March 2022. I moved to Utah in March 2022. My employer withheld NM and UT state taxes from February 2022 through May 2022 ( did not officially change my address with my employer until i purchased a house in Utah in May). I received NM and UT W-2s however they are not accurate because they reflect residency status changing in May instead of March. Turbo tax allows me to manually enter income earned in each state while a resident, however when i am prompted to enter double tax information on my Utah return it only asks for taxes paid to NM while I was a Utah resident (March to May). How do i account for the double tax from February to March when i was a NM resident working in Utah and taxed in both states?

T

tmunoz

The income should be taxed where the work was performed, even if the withholding was not correct for part of that time. When you are allocating your federal totals to the two states, use the time you were physically there.

I suggest you begin with fresh data imported from the federal return.

First, please check My Info in the Federal return and be sure the box is checked for Made money in another state
Then go to the States section and click on the delete trashcan icon for both New Mexico and Utah
Then, add New Mexico first, and be sure it is a Part Year Resident state and complete it
It will show your federal income and ask you to allocate what is sourced in New Mexico
Next, add Utah and be sure it is a Part Year Resident State
It will show your federal income and ask you to allocate what is sourced in Utah

This should prompt the allocation of income in both New Mexico and Utah. Utah will ask if you paid taxes to another state, so you can address any income that is double taxed.