You have to deal with a number of things when moving to a different state, and some of them can be both tedious and stressful. Not only do you have to make sure your new home is ready, but you also need to pack and secure the appropriate transportation. If you have elderly parents, soliciting help from senior move managers can make the process much easier.
One other thing you need to remember is how the move will impact your taxes. Your tax filing is likely to be affected when you move to another state. In this post, Busy Buddies, Inc. discusses how your taxes may be affected by your relocation.
How Will Moving to a Different State Affect My Taxes?
Homeowners often ask this question if they have to move to a different state. The short answer is: maybe. You will need to file a part-year return for each state you lived in during the tax year. Make sure to check if the states you lived in collect state income tax. Using a tax preparation software program may make things easier for you.
How Do Part-Year Returns Work?
There are two main scenarios: first, that you moved to a new state midway through the year and only began working there after you moved. In that case, all you’ll have to do is file part-year returns for the state you previously lived in and the state you live in now. Next year, the only return you’ll have to file is for the state you currently live in. If you have elderly parents who are retired and plan to move to a different state, but are unsure of how taxes work in their new location, you can ask your moving seniors service provider for guidance.
In the second scenario, you began the year living in one state while working remotely in another, then later in the year decided to move to the state your work is based in. For this scenario, you may have to file three returns: a part-year return in the state you lived in to cover the income you earned earlier in the year (this includes the income you earned in the other state); a part-year return in the state you moved in to cover the income you earned during the latter part of the year; and a non-resident return in the state you relocated to in order to cover the income you earned while living in the previous state.
To get started with the moving process or if you require help when you declutter your home, turn to Busy Buddies, Inc. We are your leading provider of senior moving and packing and unpacking services. Give us a call at (703) 828-1833 or fill out our contact form to request a free estimate. We serve clients in Arlington, VA, and other nearby areas.