Relocating: How Moving to Another State Affects Your Taxes

Moving to a different state is quite a daunting task. Hunting for a moving company, buying or renting a new home, packing and unpacking, it can be a very stressful experience. However, there is another thing that would likely worry you, and that is your taxes. Some people worry about how moving to another state will affect their taxes for the next year.

In this post, Around Town Movers discusses how moving to a different state can affect your taxes.

Depends on to Where You’re Moving

If you intend to move to another state, you’re probably asking the question of how your taxes will be affected by your move. The short answer is they won’t be affected too much. Depending on what state you’re moving to and lived in, they might collect income tax. You can ask your local movers if you aren’t too sure. As a matter of fact, all that will change is how many tax forms you’ll have to fill out. If you moved out of the state in the middle of the year, you’ll have to file a “part-year” return tax for both states.

Nonresident Returns

Of course, this isn’t the only scenario; what if you started to work in a different state and then moved to that state later in the same year? The only changes that would happen this time around is you would now have to file three returns. The first would be a part-year return for the first state to cover the income from months you lived there, a part year return for the state you moved into to cover the income earned in the latter half of the year and a nonresident return to cover the income you earned when you still lived in the first state. If this is the case, it’s best you always to file your nonresident returns first to get that out of the way.

If you’re in need of movers this spring, turn to Around Town Movers for your relocation. We are your number one provider of move coordination and downsizing assistance services. Give us a call at (703) 691-5598 or (703) 682-5922 , or fill out our contact form to get a free quote. We serve homeowners in Arlington and Sterling, VA, and other nearby areas.