Best way to file state

Lived in NJ in January and rented an apartment. Bought a house in Oregon the prior year and moved there on February 1. Received distribution from IRA of $50k in January in NJ. Total other income for the entire year is $30k. Age > 65 and single filing status.

What is the best way to file state returns?

Reply to
Luka
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You need to file federal, NJ, OR. Best way is with a pro as you won't have a headache. You can also file using the online tools. Your IRA distribution is NJ source income so won't be taxed by OR -- thank heavens because OR tax rate is higher.

Reply to
removeps-groups

It depends on whether the taxpayer was a NJ resident for tax purposes. Where did this person live before 2009? Did he or she live in the Oregon home before February of 2009? Why was the individual in NJ? Was the person there only for the month of January, or had he or she lived there previously? It's not clear from your facts.

Assuming the taxpayer was domiciled and resident in NJ before the move, he or she would file part-year resident returns in both states. If there is no NJ source income (i.e., income from real or tangible personal property located in NJ, or from a business carried on in NJ), file Form NJ 1040 and include all income received from January 1 to the date of change of residence (including the IRA distribution). If there is NJ source income after the move, also file Form NJ-1040NR and report all NJ source income from the date of change of residence to the end of the year. Oregon will allow the taxpayer credit for the tax paid to NJ on the NJ-1040NR.

Assuming the taxpayer was not an Oregon resident before February 2009, he or she would file Form 40PY as a part-year resident, including all income received after the change of residence. Since Ballot Measure

66 did pass, you would use Chart B to compute the tax.

Katie in San Diego

Reply to
Katie

Katie, thanks for the detailed response. Client was not living in Oregon until moving out of NJ in 02/10. She was a permanent resident in NJ prior to that time. Will file PY resident for both states.

Reply to
Luka

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