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My tax situation for tax year 2009 is somewhat complicated. I was a resident of Louisiana all of my life until November 27, 2009, which is when I became a Texas resident. I continued working for the same company in Louisiana, a state with an income tax, when I moved. I now work from home in Texas, a state without an income tax.

To further complicate things, my company has physical offices in Texas as well, but payroll and HR and the bank accounts are in Louisiana. The address the pay stub comes from is Louisiana.

For tax year 2009, I received one W-2, several 1098-Ts, several 1099s, and several 1099-Rs (aunt passed away).

I know I owe Louisiana income tax on the W-2 money I earned from Jan 1 to Nov 26. Additionally, I owe money on the 1099-Rs as I received all of this money while a Louisiana resident. I would think I owe a proportional amount of the 1099-INT interest money, and keep a full credit for the 1098-Ts that I got as a result of being a student in Louisiana.

However, my W-2 shows the LA state income equal to my federal income, which is incorrect, if I understand this correctly.

What money is taxable to Louisiana?

Also, what about tax year 2010? I will have been a resident of Texas for all of 2010, while earning all of my W-2 income from a company based in Louisiana. Do I even need to file a return with Louisiana for 2010? Their website would lead me to believe this is necessary, but the company says that I am a Texas resident for 2010 and they aren't even reporting anything about me to the Louisiana Department of Revenue.

The nonresident/part-year resident Louisiana form (IT-540B) seems to calculate that I owe a few hundred dollars for the amount I did not have the company withhold for December and 4 days of November 2009. Can I calculate the proportion myself when filing?

Please help! I don't understand any of this.

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1 Answer 1

up vote 8 down vote accepted

You may get some advice here, but you REALLY need to talk to a tax adviser who is familiar with the laws of both states, or possible two, one from each state. There is a significant amount of money on the line here, not just tax but penalties and interest if you get this wrong. Once you get it figured out, you probably will be able to take care of it yourself in the future, but make sure that it gets done right initially.

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Absolutely, This isn't the "typical" scenario. As far as I know, most states with an income taxes only tax their own residents. –  George Marian Oct 5 '10 at 19:53
    
Keith, this is unfortunately what I figured, but thanks for taking the time to read my question. –  Chris Benard Oct 6 '10 at 12:55
    
Re:"Most states with an income tax only tax their own residents" is completely wrong. Each state has their own regulations, but for the most part if your "home office" (ie. the location your company considers your company office to be located in) is in a state that collects income taxes then they will expect you to pay income taxes even if you don't live in that state. Also, if you perform work in another state, they very well could expect you to pay income taxes for what you earned while in that state. Professional athletes being a perfect example... –  Dunk May 28 '13 at 20:54
    
If your home state and work state both collect income taxes then they usually have agreements in place (particularly if they are next to each other) as to how the states will split the booty. –  Dunk May 28 '13 at 20:55

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