There are several reasons why people find themselves filing their taxes in more than one state. Some people will be living in one state while working in another. Other people will find themselves relocating throughout the year. Whatever the reason may be, it can be tricky to know how to go about getting your taxes filed the right way. Mark Dicus & Company is here to share some tips that will help you navigate the process of filing your taxes in more than one state.
Factors When Filing Taxes in Two Different States
When it comes to filing taxes in two different states, there isn’t a one size fits all move. There are several factors that need to be considered including:
– Specific states involved
– What state is considered the source of the income
– Whether or not you have changed to a different job or kept your same employment
– If there is a reciprocity agreement between the two states you’re working with
Should I File as Part-Year Resident?
If you are someone that needs to look into filing taxes in two different states, chances are, you will end up filing a part-year resident return. You’ll more than likely have to file a return in any state you have earned income in whether you are earning wages or are self-employed. Even those that have property that generates income will have to filing this way. The first thing that you need to do is look into the requirements for the states you need to file in. Some states will consider you a permanent resident after 183 days. Most of the time, any income that is a result of interest, dividends or pensions will need to be filed in the state of residence. There are also some states that will require you to report income from all different sources like any other full-time resident.
How Do I File Taxes if I Worked in Two States?
Some people will live in one state while they work in another. When this is the case, the way you file will depend on whether or not the states have a reciprocity agreement or not. If there is no such agreement you will have to pay taxes on your earnings in both states. You will need to first file a non-resident return for the state that you’re working in. Then, you will have to file a resident return in the state where you reside. However, it can’t be overstated enough that you need to be familiar with the rules and regulations for each of the states that you’re working with.
Tax Preparation, Filing, Planning & More in Salt Lake City, St. George, West Valley City, Provo, Orem, West Jordan & Greater Cedar City, Utah
If you have questions about how to go about filing your taxes in two different states, you can turn to Mark Dicus & Company to help you get it all sorted out. We will help make sure there are no mistakes as you file with two states. Call us today!