Multiple state tax question.

"Jim" wrote

Um, yeah, no.

New York will be expecting a return, and legally they are due a return. So, for the number of days she was in NY, divided by 365 and apply that to her gross wages should put the amount close enough to what she earned in NY as a NY resident. Be sure to mark the boxes for final return, etc. Same for NYC if she resided or worked there. She'll probably have some small balance due to NY without any withholdings, but you won't know that till you get the returns done.

The complexity of this might make it a good year to seek the help of a local CPA or EA in preparing and filing your returns.

Except, of course, 2008 had 366 days... ;-)

Be sure to mark the boxes for final return, etc. Same for NYC

Agree. There are way more things you (the OP) have not addressed than you have, which will determine your final filing requirements and tax liabilities for each of the states where each of you lived or earned money. Where did you and your wife each reside on every day of the year? Where were your domiciles? Don't forget Arizona is a community property state.

You may also be entitled to moving expense deductions, although they need to be calculated on a state-by-state basis.

-Mark Bole

Your wife needs to file two state returns, one as a part-year resident of New York state for the months of January and February and the second as a part-year resident of Arizona for the rest of 2008. She'll have to pay tax to NYS based on her income for her two months there, as she had no NYS tax withheld. On the Arizona return she would report 10 months of income, showing the full amount of Ariz. tax withheld.

"Mark Bole" wrote

I must have slept through that extra day.

No, your wife will have to file a part-year resident return with NY and pay tax on the income she earned there in January and February. I

I gather she worked for the same employer in Arizona as in NY. If not, she's just missing a W-2 from her NY employer. Assuming it's all the same employer, if she has the payroll check stubs she should make an actual cutoff as of the date she moved to Arizona. Otherwise, prorating by the days, as others have suggested, is fine.

Note that she would not be subject to the NYC individual income tax based on working in the city if she did not reside in the city. Nonresidents of the city are not subject to the tax. If she lived in NYC she is subject to the tax regardless of where she worked.

Katie in San Diego

Also, the NJ & NY part year resident returns will likely be mfs due to different residency

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