State Income Tax Information

Both of the above charts are for INTERNAL USE ONLY.

How do I file if I moved to a different state last year?

If you moved to a new state during 2017, you'll normally file a part-year return for each state you lived in during 2017, assuming the state(s) collect income tax.

Below are some common scenarios and how they would be handled. Use these as a guide for your particular situation.

Scenario 1: You moved to a different state and started working there after moving

This is the most common scenario. Let's say you've lived and worked in New York for years.

In September, you moved from New York to Pennsylvania. After moving, you started working for a new employer in Pennsylvania.

This year only, you'll file part-year returns for both New York and Pennsylvania. Next year, you'll only need to file a Pennsylvania return.

Scenario 2: You started working in a different state; later in the year, you moved to that state

You're a New York resident who had been working in New York. You quit in late March. In April you started working for a different employer in New Jersey.

In September, you moved to New Jersey to save on living expenses and shorten your commute. You would file 3 returns:

  1. A part-year New York return covering income earned January through August (including income earned in New Jersey);

  2. A part-year New Jersey return covering income earned September through December;

  3. A nonresident New Jersey return covering income earned while you were still a New York resident (April through August).

You should prepare your returns in this order:

  1. Nonresident New Jersey (always do any nonresident returns first)

  2. Part-year New Jersey

  3. Part-year New York

Next year, you'll just file a resident New Jersey return.

Scenario 3: You and your spouse moved to a new state; one works there, the other still works in the old state

Let's say you and your jointly-filing spouse were New York residents until July. Then you both moved to Vermont.

Your spouse now works in Vermont, but you still commute to your New York job. You would file 3 returns:

  1. A jointly-filed part-year return for New York covering income earned January through June;

  2. A jointly-filed part-year return for Vermont covering income earned July through December;

  3. A nonresident New York return for yourself, covering the income you earned as a Vermont resident (July through December).

You'll want to prepare your returns in this order:

  1. Nonresident New York (always do any nonresident returns first)

  2. Part-year Vermont

  3. Part-year New York

Next year, assuming nothing changes, you and your spouse would jointly file a Vermont resident return along with your nonresident New York return.

Which states don't have income tax?

Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming don't have income tax. If you're a resident of one of these states, you don't need to file a return in that state.

In addition, New Hampshire and Tennessee only tax interest and dividend income, not wages, earnings, or other income:

  • New Hampshire residents only file a tax return if their interest and dividend income exceeded $2,400 ($4800 for joint filers) plus additional exemptions for age, blindness, and disability.

  • Tennessee residents only file a tax return if their interest and dividend income exceeded $1,250 ($2,500 for joint filers). This is the Hall income tax.

If you're a resident in one of the remaining "taxable" states and you earned money working in one of these "tax-free" states, that income needs to be reported on your resident state return.

For example, if you're a California resident and worked in tax-free Texas, you'd still have to report your Texas earnings on your California return as well as your federal return.

Similarly, if you're a resident of tax-free Texas and earned money in California, you'd still have to file a nonresident California return to report your earnings, and you'd report those on your federal return as well.

 Will I receive a tax credit if I work in a state other than my resident state?

NJ will tax you on your worldwide income. NY will tax you on NY sourced income. NJ will credit you for out of state taxes paid. Credit for the lesser of out of state or in state tax rate. Same premise as the foreign tax credit. There can be reciprocity between states (fiction) but the reciprocity does not apply on local level. City may tax you. Credit may be claimed on the return for the amount you paid on local taxes. 

 If I contribute to a qualified tuition plan can I get a state tax deduction? 

State specific

 How are capital gains taxed at the state level? 

State Specific

 What are the income sourcing rules for the state of CA?

Business income/wage income/…. Investment income and retirement income  only taxed to resident state. Worked in taxing state and moved to non taxing state there is no tax. Non taxing state moving to taxing state your now being taxed in the state you reside in.

 https://www.ftb.ca.gov/forms/misc/1004.pdf http://www.gpo.gov/fdsys/pkg/PLAW-

104publ95/pdf/PLAW-104publ95.pdf