State Tax in two states !

[karunanidhis]

What is the name of your state? Minnesota.

Hi !
I have been living in the state of Minnesota for the whole year 2005.
In mid 2004, I used to work in NewJersey for a NewJersey employer. I moved to Minnesota in June 2004 and continuing to live in Minnesota.

However my NewJersey employer was still withhelding State Tax for NewJersey (and not for Minnesota). In July 2005, I quit my job and started working for a Minnesota Employer and he was withhelding Minnesota State Tax (which is correct).

So, currently I have a W2 for two states. NewJersey (till the month of June 2005) and Minnesota (from June through December). But I never lived in NewJersey for the year 2005.

So, How should I file my State Taxes.? Someone said I should file as Non-Resident in NewJersey and get all the money back from NewJersey (will I get all my money back if I file as NR ??) and file as a full resident in Minnesota. One point to note is, because my Minnesota tax was too low for the whole year (because it was now withheld for about 6 months), they are going to pose a Penaly for under-withhelding.

Any advice will be greatly appreciated.

Thanks.
- Karun

[LdiJ]

Originally Posted by karunanidhis

What is the name of your state? Minnesota.

Hi !
I have been living in the state of Minnesota for the whole year 2005.
In mid 2004, I used to work in NewJersey for a NewJersey employer. I moved to Minnesota in June 2004 and continuing to live in Minnesota.

However my NewJersey employer was still withhelding State Tax for NewJersey (and not for Minnesota). In July 2005, I quit my job and started working for a Minnesota Employer and he was withhelding Minnesota State Tax (which is correct).

So, currently I have a W2 for two states. NewJersey (till the month of June 2005) and Minnesota (from June through December). But I never lived in NewJersey for the year 2005.

So, How should I file my State Taxes.? Someone said I should file as Non-Resident in NewJersey and get all the money back from NewJersey (will I get all my money back if I file as NR ??) and file as a full resident in Minnesota. One point to note is, because my Minnesota tax was too low for the whole year (because it was now withheld for about 6 months), they are going to pose a Penaly for under-withhelding.

Any advice will be greatly appreciated.

Thanks.
- Karun

Yes, you would file as a non-resident of NJ, and as a resident of MN. Or, you could try to force the employer to fix the error...however its quite complicated for them.

[karunanidhis]

Thank you LdiJ !
So, will I end up paying the penalty for "tax under-withheld" in Minnesota. Minnesota Tax website says, "If the difference between tax withheld and actual tax is more than $500, I will need to pay a penalty (need to calculate the penalty in a different worksheet. Don't know how much it's going to be).

This can't be good because I end up paying penalty for the error done by my employer, correct ?

Thanks again.

[LdiJ]

Originally Posted by karunanidhis

Thank you LdiJ !
So, will I end up paying the penalty for "tax under-withheld" in Minnesota. Minnesota Tax website says, "If the difference between tax withheld and actual tax is more than $500, I will need to pay a penalty (need to calculate the penalty in a different worksheet. Don't know how much it's going to be).

This can't be good because I end up paying penalty for the error done by my employer, correct ?

Thanks again.

Yes, its quite possible that you could end up paying a penalty for an error made by your employer. Perhaps you should take that up with your employer.