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January 27, 2024
Question

I moved from NE to AZ. I paid state taxes in both, but why do I owe in AZ.

  • January 27, 2024
  • 1 reply
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My w2 shows total state taxes and I also have one with how much state tax went to each state.  I paid more in AZ but am confused on why I owe in the state

1 reply

January 29, 2024

If you moved from one state to another you'll need to file part-year returns in both states.

TurboTax handles part-year returns, but you need to make sure you've set up your personal information correctly for us to do so. How do I file a part-year state return?

 

You'll need to allocate your income between the two states. First, determine if the income you're allocating is earned or unearned, as these are handled differently:

  • Earned income comes from employment, such as wages, salaries, tips, payment for services, and commissions
  • Unearned income comes from non-employment sources, such as interest, dividends, capital gains, social security, and IRA distributions

To allocate your income check: How do I allocate (split) income for a part-year state return?

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