Moving to a state with no state tax

[jmts2000]

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

Hi, I moved to Washington from NYC and was wondering how the tax situation works. I changed my residency back in May but when I file my taxes, do I need to do anything special such as state I lived in NYC until May or will it just take my current residence into account? Part year state tax form?

Thank you

 

[FlyingRon]

NY has special part year tax forms for people who move mid-year.

 

[BrethAndrew]

Most states won't allow you to deduct state income taxes you paid, but some states go the opposite route and actually allow you to deduct a portion of the federal income tax you paid.

 

[FlyingRon]

Most states won't allow you to deduct state income taxes you paid, but some states go the opposite route and actually allow you to deduct a portion of the federal income tax you paid.

Different states have different partial year strartegy. NY I'm pretty sure is one of the prorate states where your partial year form just scales everything by the number of months you were in the state.

Other states charge you tax for the full year but allow you to subtract off what you paid to the other state.

Yes, I don't know any that give you a "deduction" (in the way the Feds let you take a deduction) for Federal taxes, in fact, the ones like NY that allow you to just copy your 1040 sched A where such are deducted put a line to make you add back your state/local tax deduction.

 

[davew128]

Most states won't allow you to deduct state income taxes you paid, but some states go the opposite route and actually allow you to deduct a portion of the federal income tax you paid.

Wow. Incredibly irrelevant to the issue at hand.

 

[Stephen1]

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

Hi, I moved to Washington from NYC and was wondering how the tax situation works. I changed my residency back in May but when I file my taxes, do I need to do anything special such as state I lived in NYC until May or will it just take my current residence into account? Part year state tax form?

Thank you

I'm making two assumptions: 1st, you really meant Washington state and not Washington, DC and 2nd, the tax situation you are asking about is state income tax as the feds don't care where you live in the US.

As Flying Ron stated, NY has special forms and rules for partial year returns for people who move into or out of NY during the year.
Washington state has no income tax so there is no state filing. According to Google, Washington, DC does have a local income tax.
As for other taxes, such as sales tax and property tax, you should now be paying those to Washington state.

 

[OHRoadwarrior]

You file part year taxes for the location you lived based on being a part year resident. The directions for each return will define how you calculate the amount you owe each state.

 

[LdiJ]

You file part year taxes for the location you lived based on being a part year resident. The directions for each return will define how you calculate the amount you owe each state.

Honestly this is one year when you might want to consider using a paid professional to handle your taxes. They are accustomed to dealing with part year state returns and it might make things easier for you.

Unfortunately though NY is a state that requires preparers to be licensed in the state in order to submit returns, and NY also makes it virtually impossible for an NY state return to be submitted unless it is submitted electronically. They do not even publish an address where a return can be submitted by paper...and even if you call them its like pulling teeth to get them to give up an address where a paper return can be mailed.

HOWEVER, they also allow out of state preparers (not the companies they work for but individual preparers) to submit up to 5 returns per year, electronically, without being licensed, but there are some "quirks" to making that happen...and some "quirks" to making sure that NY doesn't attempt to tax the whole year's income. So, you need to make certain that any paid professional knows how to deal with an NY part year return...or is the person their firm elected to be licensed for NY.