Moved states. Which taxes do I pay?

February 8, 2011 1:22 PM

YANML, YANMA(ccountant). I moved from Arizona to NYC in mid-November (of 2010). Where do I need to pay taxes?

I'm honestly not sure what other information you need, so please ask, and I'll answer promptly.

I worked as an exempt, full time (W-2) employee in Arizona. I moved out to NYC for a similar job at a different company. I started working for the new company immediately.

I live in NYC full time (and have done since November), but I had an apartment in Arizona until about a month ago, due to a lease I had on the apartment.

Questions are: 1) in which states do I need to pay taxes? (I assume both?) 2) Do I also need to pay NYC tax? 3) Do I pay NY taxes only on income earned in NY? What about for AZ?

If this is complex enough that I really need an accountant, I will hire one, but I've always done my own taxes in the past, and would prefer to continue doing so.

posted by !Jim to Work & Money (8 answers total)

In general, you pay taxes for the state while you were getting income from that state (and living there, these probably coincide) -- so you will pay AZ taxes on the stuff you earned in AZ, and NY taxes on stuff you earned in NY. I've done this sort of multiple-state thing repeatedly -- never with NY though so I don't know how NYC taxes figure in -- but other than that, it was based on where I was when I earned that money.
posted by brainmouse at 1:27 PM on February 8, 2011

I don't have an exact answer as to how it will work out, but I know for sure that if you use a program like Turbo Tax (including the web-based one) it will figure it out for you based on the dates you enter for when you became a resident of NY and when you started/ended each job.
posted by joan_holloway at 1:29 PM on February 8, 2011

Both Arizona and New York have forms and instructions for filing partial year resident taxes.
posted by Zophi at 1:29 PM on February 8, 2011

NYC tax returns are just another section in the NYS return. You pay taxes in AZ, NYS and NYC. You don't need an accountant. Remember if you make over the FICA limit to claim back the excess you paid.
posted by JPD at 1:32 PM on February 8, 2011

It only meant for me that I'd have to pay a little more to file my turbotax online, or whatever flavor you use. If you do it yourself-yourself, I think you can't use the EZ form, it's not a big deal, your W-2s will have done the math for you as far as what you paid.
posted by yeahyeahyeahwhoo at 1:43 PM on February 8, 2011

Like joan_holloway said, a tax software program will walk you through the process of paying taxes in multiple places. I did this with H&R Block at Home when I lived in two states during one year and it was a snap. Easily worth the $25 (to me, at least).
posted by puritycontrol at 1:46 PM on February 8, 2011

I don't know why I assumed turbotax (or similar) wouldn't be able to handle this, but as long as it does, that works fine for me! Thanks all!
posted by !Jim at 4:34 PM on February 8, 2011

You'll pay the taxes in the state in which you completed the work. (This is why Alison has had to file California taxes even though she's NEVER LIVED THERE. They seriously come after state income taxes on income earned during her work-ordered couple-week stays there, though California is completely nutty that way, and I'm not sure if that's unique to them.)

The annoying part is that you have to buy the additional state's tax package. So they usually include one state for free, or federal for free, charge for the state, and they'll charge you for NY since you need to bolt it on.
posted by disillusioned at 4:55 PM on February 8, 2011