The last 18 months have been tumultuous for many Americans. It had many families realizing that they didn’t have to live in a city to work for their company. Many that were finding themselves working from home decided that they wanted to relocate, at least for a time, to a quieter city that was more conducive to family life. This is one of the reasons that house prices have done nothing but soar throughout this entire pandemic. However, whether or not you relocated temporarily or decided to make the move a permanent one, it can complicate your taxes a bit. Mark Dicus & Company is here to talk about what moving over the last year could mean for your taxes.
Do I Have to File Taxes in Two States if I Moved?
Unless you move to Texas, Nevada, Washington, South Dakota, Alaska or Florida, you will be paying some sort of income tax. While most states do require you pay some sort of income tax, not all states have the same rules they expect their residents to abide by. It will depend on whether or not you have permanently moved to that state or are living there temporarily.
Tax Filing Complications
One thing that can complicate your taxes is the fact that just because you have moved to another state for whatever reason, it doesn’t always mean that you aren’t still considered a resident in the state you moved away from. You have to be aware of “double taxation” which means that you have been charged taxes twice on the same income. Most states will offer you a refund when this happens. You certainly need to be aware of the regulations that are in place for the state you live in so you can avoid running into more complications than you have to when it comes to filing your taxes.
How to Handle Taxes when Working Remotely
If you have spent a significant amount of time in any state and worked while you are there, you are more than likely going to owe taxes in that state. If you spent the first have the year in California and then moved to Texas for the second part of the year, you will owe taxes in both of those places. You need to check whether or not you are working in a state that participates in the “convenience rule” which allows for double taxation. You just need to check whether or not the state you are in has rules in place to help you avoid that.
Tax Preparation Bookkeepers, Accountants & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
If you have questions about filing your taxes and living in two different states during the same calendar year, you need the help of the professionals at Mark Dicus & Company to make sure you know the rules for the area that you are in. It is our goal to make filing taxes as easy as possible. Call us today!