paying state taxes even though I don't live or work there yet?

19 years ago

First off, if this is the wrong place for tax questions, I apologize; I didn't see many taxes q's already posted. This question is about 2007 taxes.

I currently live in MD and work in VA. I am going to move to GA soon, making that my primary residence and work remotely for the VA office.

Right now this company is withholding MD and GA state taxes.

When I do taxes next year I intend to file in MD and GA as a part-time resident based on the actual date that I move to GA, which is likely the end of this month. That means I (via my employer) will have paid GA taxes before the date that I will claim as my start of residence there. Will that raise any red flags or otherwise cause me any problems?

Another factor: I will likely own houses in both states, until the MD house sells (slow market). Can I claim that my MD residence ends when I move to GA, or does it remain in effect until the MD house sells? Do I have to do anything "official" to claim which is my primary residence?

Thanks for any advice!

Sort by:Oldest

Comments (7)

davidandkasie
19 years ago
as far as the state taxes, i would check with a CPA who handles taxes for both states or at least for GA.

as to the house, you can claim 1 as primary residence and thus deduct it accordingly. I am not sure but i think you can claim the one in GA starting the day you purchase it. you just can't claim both at the same time. the interest is deductable on both, it may be less than 100% deductible for the 2nd home though. AFAIK, the only thing you do officially is to change the address when you file your taxes, and don't forget to file for homestead exemptin in GA. if their's is like ours, it will save you 30-40% on property tax!

your best bet is to contact a competent CPA concerning your situation.
quiltglo
19 years ago
Get a new driver's liscence, sign up for voter registration/cancel the old location and forward your mail to the need address. That tells everyone you are there to stay. Good luck selling.
Related Discussions
Okay, so maybe I don't know everything yet...
Q
Comments (45)
Okay, I'll leave it be and hope for the best. The pine nuggets seemed perfect, with some pieces being dime sized at the largest and some being really fine mulchy stuff. I'll see if I can get a picture when I go down to my mother's house this weekend, I don't remember the brand name. Was a massive bag for pretty reasonable though, I've used that stuff for nearly ALL of my plants this last repotting season. While most are houseplants, for edibles I planted an olive and a cherry tree in soil amended with it. Guess I'll just see what happens over the winter!
...See More
Well, I don't see why I should have to pay ANYTHING!
Q
Comments (14)
That's so awful. Not just is it horrible to drag a kid around Disney watching you buy stuff that they can't have, it is not fair because you are keeping them from the rides! The worst one I've heard re Disney is my entry in the Worst Mother Ever contest. I had a neighbor a few years ago who had had a rough deal; he had gotten hit by a drunk driver and suffered some brain damage. He could never get back into his old profession (due to the damage), had outrageous medical bills, etc. So his wife decided that that was not what she had signed up for, apparently, and left him and the kids. She seemed to have this incredible and bizarre anger towards him, like it was somehow his fault that her life plans had not worked out, and seemed determined to "make him pay", even at the expense of her children. (According to other neighbors at that time, when he was in the hospital after the accident, they didn't think he'd make it. Some attorney got a hold of her or vice versa and she was telling the neighbors how much money she'd get in the lawsuit for having lost her husband. Well, he did make it - but the accident money all went towards the medical bills. Maybe she was angry that he didn't decently die so she could be a wealthy widow.) For example, their custody agreement said that he was responsible for dropping off the kids for the beginning of their visitation (backwards from most people's.) He didn't have a car and I remember driving back from the grocery one scorching hot summer Sunday and seeing he and the young kids waiting at the bus stop. I stopped because I knew the bus didn't run very frequently on Sundays; in order to drop off the kids he had to take a bus into town, wait almost two hours for a transferring bus back out of town to her place, and then do it all in reverse. In total this trip was going to take almost seven hours, nearly half of it with the kids in 90 plus heat. All this was to get to a woman's house who lived five miles away, (on the other side of a shopping district/highway so unwalkable), and who had a car. Needless to say I drove them there, and on the way back asked him why his X couldn't pick the kids up. She had told him that it was his responsibility per the court order and refused to do it, even though her own kids had to go on this several hour bus trip! Anyway, the guy struggled financially the whole time I knew him due to these circumstances. But every year, without fail, the X would go on a two week trip to Disney with her BF and her BF's niece. (Her own kids, of course, had never been.) And every year, without fail, she'd come over to see her kids upon her return and show them all of her pictures! And these were young kids - I just couldn't believe it! What on earth would be going through someone's mind to think that it would be so nice to show your kids how much fun you had, again, in Disney, with someone else's child?!
...See More
Oh Great...Even the Estate Sale People Don't Want Our Stuff :(
Q
Comments (16)
"I just know it's probably from the 1940's & most likely costume jewelry." You may be able to get big bucks for the stuff. Bakelite and Lucite vintage jewelry is quite collectible. Certain styles of the era are popular even it it is not true Bakelite. Google some of the places that sell it online and contact them. I would try to get another estate sale company in to go through things and see if there are any items worth it to be put up for auction. Do not rely on just that one estate sale company to give you advice. Way back when..........when my grandfather died, my mother did a bunch of rummage sales. It barely put a dent in the amount of stuff my grandfather had saved like a packrat. (Depression Era guy.) Then, my mom had someone come in to look at the stuff. This auction woman pawed through the stuff and found some valuable stuff that had gone unrecognized. For instance, my grandfather had a shoebox full of pens he had saved. My mom had put 50 cents on it for the rummage sales. No one bought it. The auction woman found a pen in there called *Big Red* from the late '20s and it sold at auction for a LOT of money. (This was before they reissued the reproductions) A little plastic box turned out to be an Art Deco celluloid cigarette holder. $$$$. A can opener was vintage Harley Davidson issue. It was sent to a store out East on consignment and fetched a pretty penny. I could go on and on. My point being that you could have treasure trove of collectibles. If you do not have the time or the knowledge of collectibles, have someone come in to look over the stuff again. There are places who will list things on eBay for you for a percentage of what it sells for. One persons junk is another man's treasure. My one cousin is always on the lookout at sale for old rusty, vintage tools she uses for decoration. She just cringes when at estate sales she is told "Oh yeah, we had a lot of old tools. They were all rusty and beat up, so we threw them out before the sale." Some things are only valuable to certain individuals. When my uncle died, there was an old, floor model radio in nice wood cabinet. My brother removed the guts from it and was going to use the nice Art Decor cabinet. Another cousin (who is into vintage radios) went ballistic finding this out, as it turns out the vacuum tubes that were tossed out and hauled away in the dumpster, were valuable to collectors who use them to recondition old radios, and worth waaaaay more that that crappy cabinet was. BTW, if there is a lot of stuff Goodwill and similar organizations will come to your house to pick everything up. They will give you a receipt for taxes.
...See More
Week: I don't even know anymore!!!
Q
Comments (14)
I love your strawberry wall! What did you use to hold up the pots? The round metal bits, what are they? I'd love to do something like this but I'm afraid the only place I could put them would be hit by the basketball all the time. Maybe I could tuck them in a corner by house. I have stuff I don't need because I'm too lazy to go through it. LOL Actually, I want to scan a bunch of the kids artwork and projects, and that is a time consuming rainy day task. I guess I could have worked on it throughout the winter. I got rid of a bunch of stuff when I did the kitchen, but I need to get the lights fixed in the basement to do anything down there. I need a nice sunny day for that, since I'll have to shut off the breaker and there's not much natural light. I'm kind of afraid to take down the fluorescent thing but it doesn't work anyway, and I might get lucky and find a junction box up there under all the fluorescent stuff. Texas, I'm glad you're making progress. OldBat, your greenhouse looks great. Your plants are really coming along. Schicksal, I have doilies my Gramma made. I don't really use them, but I won't throw them out.
...See More
User
19 years ago
Have you checked with your payroll department to find out why they are deducting both states taxes now? Seems like they may have messed up and should only be deducting one at a time.
Chemocurl zn5b/6a Indiana
19 years ago
I am going to move to GA soon, making that my primary residence and work remotely for the VA office.

I wonder if VA should/would actually be considered as the state you are employed in. With people telecommuting, and working remotely, I'd 'think' your employment would be based on where the actual company (office) is based that you are working for.

Sue...just guessing and thinking out loud
partst
19 years ago
I agree with patser. Why is your payroll department withholding taxes for a state you don't live in yet? If you move at the end of this month I would think that at the end of the year you would file with GA as primary residence and MD as part time since you would have lived in GA longer. You really should ask your CPA or tax preparer.
diggerb2
19 years ago
talk with a cpa or accounting firm to do your taxes-- let them figure it out.
i worked in one year for 2 different companies in a total of 5 states, with a total of 3 "home addresses" and in one state worked in 4 different cities with 4 different city income tax rates with in a regional income tax sharing district, but lived in a 5th city with a different tax rate that was not part of the tax district had a wife who worked for the same company in 2 states at different tax rates and had children before the end of the year. I bundled it all up and gave it to the tax guy recommended by my Certified financial planner. He only charged me $180 dollars tro do all the taxes for everything. I've dumped the CFP but still
use the same CPA.
brickeyee
19 years ago
The IRS has been dealing with this for a long time.
If you have multiple locations in a year you may actually have NO permanent residence, just a series of temporary locations.
This shows up occasionally when you cannot demonstrate the intnet to return to a single location.
I would use a tax attorney, NOT a CPA for this type of multi-juridiction issue.
You never know how good your accountant was until AFTER the audit.

paying state taxes even though I don't live or work there yet?

Comments (7)

davidandkasie

quiltglo

Related Discussions

User

Chemocurl zn5b/6a Indiana

partst

diggerb2

brickeyee

COMPANY

BUSINESS SERVICES

GET HELP

CONNECT WITH US