Ok, you got the job.
- February 9, 2020 at 5:14 pm #5725
- February 12, 2020 at 5:30 pm #5743Keith LarsonParticipant
Most things about the old tax man are complicated. This one isn’t an one answer fits all, or even fits anyone every year. First, do you know your current state’s residency definition pertaining to taxes? Especially ending residency qualification? Most states, but not all, use a definition where you must set up an abode elsewhere before your residency ends. This means you may owe taxes to that state, even if you haven’t been there for a long time, but just haven’t set up another residence. The definition includes a phrase that there is an intent to live there even if there is no job.
You might also need to file taxes for the state, or states, where you work. Some states do not have income taxes. That makes it somewhat easier. You also have to look at residency definitions of where you work, if it does have taxes. Some will consider you as a partial resident, some will consider you as a non-resident. Some states have all three categories of residency, so you need to look into those definitions.
Some states have different definitions. Most notably any state that doesn’t have an income tax, Alaska…where residency actually means you get paid, but that’s a full calendar year. Idaho, I know limits the residency to 15 months of not being in the state, and not planning on returning.
Many use a tax professional. Some wing it. (The story of Capone, however, makes me a bit leery of taking chances with the taxman.) I am no longer defined as a resident any place. And I mainly use non-resident forms, when I’m in states that have income taxes. (Most states consider me to be a resident of Alaska, but I do not fit Alaska’s own definition of residency)
I’m not sure if that answer makes sense to most people. But I hope I helped a little.
- February 12, 2020 at 7:39 pm #5744
- February 24, 2020 at 6:49 pm #5752Keith LarsonParticipant
Probably the next step is knowing where you are going and looking at their taxes. Maybe investigating how your state residency does its out of state income.
A couple of days ago, my co-worker had some mail catch up to him from his home state tax. He was doing something wrong with some form so it would credit correctly. He uses his grandmother’s address, and she kept forgetting to forward it to him. He thinks he has it straight now. He had used a tax service, but the guy had told my co-worker that he wasn’t up on other states requirements.
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