Filing Taxes After Moving to Another State
Moving from one state to another can mean more than a new address and a new driver’s license. It also might impact your federal or state return. How you’ll file taxes after moving to another state depends on several factors, including:
- Which state is considered the source of the income
- The specific states involved
- If you changed jobs or kept the same one
- If there’s a state income tax reciprocity agreement between the states involved
You’ll likely file a part-year resident return in both states. Usually, you’ll have to file a state return in any states where you:
- Have earned income from wages or self-employment
- Have property that creates income
Before you begin, check the residency rules for each state. Some states consider you a full-year resident if you’re present in the state for at least 183 days.
Filing taxes after moving to a neighboring state might include a special situation if you keep your job in your original state. First, you’ll want to find out if there’s a reciprocity agreement between those states. Usually, only your state of residence will tax you if:
- You work in the other state.
- Your wages are your only income from the other state.
If you’re filing two part-year resident returns, check the rules for each state on what income to report. Income from interest, dividends, and pensions is usually considered to be from your state of residence. When reporting your income, keep in mind:
- Some states will have you report your income from all sources, just as a full-year resident does. Then, after the tax is calculated, this amount will be reduced based on the income you made as a resident compared to your total income.
- Other states will have you divide the income between states before calculating the tax.
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You can claim the standard deduction or itemized deductions to lower your taxable income. The standard deduction lowers your income by one fixed amount. On the other hand, itemized deductions are made up of a list of eligible expenses. You can claim whichever lowers your tax bill the most.