Living and working in one state; house and family still in another!

[GeorgeSpelvin]

What is the name of your state (only U.S. law)? Maryland

I work for the federal government and transferred to a job in Silver Spring, Maryland several months ago. I am authorized full relocation expenses but decided (due to the housing market and other reasons) not to move my entire household yet. Instead, I moved alone into a small apartment on August 1, 2009. That is also the day that I officially went on the rolls of my new employer in Maryland.

Meanwhile, I still have a home (for which I am making mortgage payments) in Georgia. My wife and child still live in our house in Georgia; our plan is to put the house on the market and have them move up here in summer, 2010. My wife works part-time in Georgia. We have always filed Married/Jointly.

I'm now a bit confused about the tax implications of my current situation. As noted, I lived in Georgia for the first 7 months of 2009 but will have lived in Maryland for the remaining 5 months. My family will have lived in our house in Georgia for all of 2009.

My current employer is withholding Maryland state taxes. Obviously, Georgia taxes were withheld prior to August 1. My questions are:

Am I correct in assuming that I will need to file state income tax returns in both Georgia and Maryland for 2009?

Am I considered a resident of Maryland since I live in an apartment here, work here, and have registered my car here? I don't want to pay the additional "non-resident" tax, but I'm confused as to whether I'll be considered a Maryland resident with my family still living in our house in Georgia.

Can we still file Married/Jointly?

I've heard of people getting screwed by getting "double-taxed" by two states. Is there anything I need to do to avoid paying an unfair amount due to my particular situation?

Finally, I earned a small amount (less than $3000) under a Schedule C Business while living in Maryland, but derived from a Georgia source and work done in Georgia (consulting fees). Will the taxes on this income belong to Georgia or Maryland?

Any advice is greatly appreciated!

 

[FlyingRon]

This is complicated, I suggest you go to a better tax preparer in Georgia (CPA or otherwise) to work on this one. Federally, nothing stops you from filing jointly, but here may be some tax benefits in splitting things state-wise. Maryland has a special partial year tax form and Georgia probably has a similar procedure. The dodgy part is the fact that your wife's residence didn't change.

 

[LdiJ]

What is the name of your state (only U.S. law)? Maryland

I work for the federal government and transferred to a job in Silver Spring, Maryland several months ago. I am authorized full relocation expenses but decided (due to the housing market and other reasons) not to move my entire household yet. Instead, I moved alone into a small apartment on August 1, 2009. That is also the day that I officially went on the rolls of my new employer in Maryland.

Meanwhile, I still have a home (for which I am making mortgage payments) in Georgia. My wife and child still live in our house in Georgia; our plan is to put the house on the market and have them move up here in summer, 2010. My wife works part-time in Georgia. We have always filed Married/Jointly.

I'm now a bit confused about the tax implications of my current situation. As noted, I lived in Georgia for the first 7 months of 2009 but will have lived in Maryland for the remaining 5 months. My family will have lived in our house in Georgia for all of 2009.

My current employer is withholding Maryland state taxes. Obviously, Georgia taxes were withheld prior to August 1. My questions are:

Am I correct in assuming that I will need to file state income tax returns in both Georgia and Maryland for 2009?

Am I considered a resident of Maryland since I live in an apartment here, work here, and have registered my car here? I don't want to pay the additional "non-resident" tax, but I'm confused as to whether I'll be considered a Maryland resident with my family still living in our house in Georgia.

Can we still file Married/Jointly?

I've heard of people getting screwed by getting "double-taxed" by two states. Is there anything I need to do to avoid paying an unfair amount due to my particular situation?

Finally, I earned a small amount (less than $3000) under a Schedule C Business while living in Maryland, but derived from a Georgia source and work done in Georgia (consulting fees). Will the taxes on this income belong to Georgia or Maryland?

Any advice is greatly appreciated!

You will need a tax professional who is knowledgeable regarding part year state returns. Its complicated, but not for someone who knows what they are doing.

You will not be double taxed. Each state handles things a little differently, but in the end, you will pay GA tax on the GA income and MD tax on the MD income.