Moved at New Year to New State: Taxes and Moving Expense Tax Year

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blastoff
Posts: 195
Joined: Thu Jan 19, 2012 12:04 pm

Moved at New Year to New State: Taxes and Moving Expense Tax Year

Post by blastoff » Sun Mar 18, 2018 9:23 am

Hi All,

I moved to a new state for a new job. Old job ended Dec 31 2017 (paid through Dec 31). New Job started first week Jan.

Paid rent in old state through Dec 31.

Paid rent in new state starting Jan 1 2018.

Technically moved over Dec 30 - Jan 1 Period.

Two questions:
1. I believe I only have to file taxes in old state for 2017 tax year. Plan to file taxes in new state for 2018. Does this seem correct?

2. What tax year should I claim moving expenses in. 2018? 2017?

Thanks!

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grabiner
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Location: Columbia, MD

Re: Moved at New Year to New State: Taxes and Moving Expense Tax Year

Post by grabiner » Tue Mar 20, 2018 7:55 pm

If you arrived at your new home on January 1, your new state probably considers you a resident as of January 1. You would file a full-year return for your old state for 2017, and your new state for 2018. Check the actual definitions; if your new state considers you a resident as of December 31, 2017, you have to file a new-state return for 2017 if you received any income while a resident of that state.

Your old state may ask you about your failure to file in 2018; if they do, you can demonstrate your residence in your new state.

Expenses should be deducted in the year paid. (Note that moving expenses are no longer deductible in 2018.)
Wiki David Grabiner

Gill
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Joined: Sun Mar 04, 2007 8:38 pm
Location: Florida

Re: Moved at New Year to New State: Taxes and Moving Expense Tax Year

Post by Gill » Tue Mar 20, 2018 8:36 pm

You’d better claim them in 2017 because they are no longer deductible beginning in 2018.
Gill

blastoff
Posts: 195
Joined: Thu Jan 19, 2012 12:04 pm

Re: Moved at New Year to New State: Taxes and Moving Expense Tax Year

Post by blastoff » Wed Mar 21, 2018 10:14 am

grabiner wrote:
Tue Mar 20, 2018 7:55 pm
If you arrived at your new home on January 1, your new state probably considers you a resident as of January 1. You would file a full-year return for your old state for 2017, and your new state for 2018. Check the actual definitions; if your new state considers you a resident as of December 31, 2017, you have to file a new-state return for 2017 if you received any income while a resident of that state.

Your old state may ask you about your failure to file in 2018; if they do, you can demonstrate your residence in your new state.

Expenses should be deducted in the year paid. (Note that moving expenses are no longer deductible in 2018.)
Thanks for reply.

Moved Dec 30-31; two day drive. Technically arrived evening of Dec 31 to new state. Moved to a rental. Rental started Jan 1 2018. Old rental ended Dec 31 2017.

I checked and I believe my new state residency is based on January 1st.

All income from old state in 2017. New state income did not start until first week January 2018.

My plan is to only file a return in the old state for 2017, and only file a return in the new state for 2018.

Regarding moving expenses. I physically did the 2-day move December 30th and December 31st of 2017. Expenses were paid then or well before then (truck, hotel). I will plan to deduct these from the 2017 tax year. I want to make sure this is correct because I know the moving credit is gone in 2018 (maybe the IRS will be on lookout). So if it's appropriate to file in 2017 then that's what I'll do. It sounds like it's based on when moving expenses were paid or completed so filing in the 2017 tax year would be correct even though I moved for a job that started in 2018.

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