If you work in two different states, you will file a tax return in both the states. One state is your Home Tax State with the other state being where you were/are a part year resident. Or as I get a lot of here in Kansas City, You live in one state and work in another. In some cases, you may have even more states.
Last year I had a client (new) that lived in one state and worked in five states.
- (Interestingly enough that particular client had one W-2 and the employer withheld for all five states – Self-filers, would you know how to work that out?)
In the state that is not your tax home, you are part year resident or a non-resident; you report income you earned while in that state, to that state. If you have received only one W-2 from your employer, then use simple arithmetic based on number of days spent in the state to figure out the income that you should report to that state.
- (Of course, that in itself brings up a really interesting taxing issue. You paid your home state taxes that should have gone to the other.)
- Colorado - 4.63%
- Illinois – 3%
- Indiana – 3.4%
- Massachusetts – 5.3%
- Michigan – 4.35%
- Pennsylvania - 3.07%
- Utah – 5%.
(The above rates may have changed)
Moving After Retirement










