Moving from one state to another is a huge undertaking. Along with hiring movers, packing boxes, and planning your trip, you’ll also need to consider the effect such a big move will have on your tax preparation procedures. Being fully aware of the difference it’ll make ensures your taxes are filed accurately and on time. 

How Where You Live Alters Your Tax Return

1. File Two Tax Returns

Those who spend part of the year in one state and the rest of the year in another may need to fill out a special form. These part-year forms include information on income tax in the state in which you previously lived. In other instances, you’ll simply fill out one standard form for each state and submit it to the IRS. This typically depends on the rules in whatever states you did or do reside. 

2. Consider Your Old House

Let’s say you buy a home in the new state but own real estate in the former one. If you choose to rent out this house, you’ll be responsible for paying income tax in the state where the rental property is located. Tax breaks are also available for selling your old home under certain circumstances.

3. Notify the IRS & Update Your W-4

Filing a timely change of address with the IRS ensures you receive all important correspondence, including refund checks. Additionally, if you moved to pursue a new work opportunity, you will have to fill out a new W-4. This may involve altering the amount automatically deducted from each paycheck to go towards Social Security and Medicare.

Tax preparation after a big move is often confusing. However, PMC Tax Services, serving all of Nebraska, provides clear and concise tax advice to clients, no matter how complex their situation. Since 1989, these skilled advisors have helped people find applicable exemptions and deductions to save them money. Along with their individual tax services, they also provide assistance to small business owners, including payroll administration. Schedule a consultation by calling (402) 467-5529 or visit the website to see their full listing of tax preparation services.