Taxes are difficult enough to figure out - throw an interstate move into the mix, and it can get really confusing. Knowing how to properly file your taxes after a corporate relocation is essential for a smooth transition from your old office to the new one. Here is what you need to do for your taxes after you've settled into your new state:
Update your information
After a corporate relocation, you employer will remain the same. However, you need to make sure you update your paycheck information with the company. For example, you either need to talk to human resources or go online and have your address changed to reflect your new residence. This is important so your W-2 will get sent to the correct location. It will also inform payroll that the state income tax has to be adjusted. If you notice your old state's income tax is still being applied to your paychecks, contact payroll to have the issue fixed.
Before filling out your tax forms, determine your residency status. For example, if you leave North Carolina and go to Indiana to work for two months, then you return to North Carolina, you are not a resident of Indiana. You'd still have to file taxes for this state, but you'd be filing as a non-resident.
File a part-year tax return
Filing your taxes is going to be a little different since you didn't live in the same state the whole year. Since you relocated, you're going to have to file a part-year tax return for each state you lived in during the year. This isn't too difficult; it just adds an extra step to your filing. Next year, as long as you don't move again, you'll only have to submit a resident tax return for the state you're living in.
Check for state oddities
Some states, such as Tennessee, Texas, Nevada and Florida, do not have an income tax, so if you relocated to any of these states, you will not need to file an income tax form for that location. Make sure your new state does not fall under this tax-free category. Knowing the rules of your new home state can save you a lot of time and effort, because you'll be able to fill everything out correctly the first time.
Hire a tax preparer
If you're feeling overwhelmed by the number of forms you need to fill out, or if you're unsure what you need to do, hire a tax preparer. Bringing in a professional to help you put your tax information together can relieve some of your stress. It's also a smart move if you're not sure whether you're filling out the right information. Filling out your tax forms incorrectly can get you in a lot of trouble with the IRS down the road, so it's better to err on the side of caution and hire a professional to work with on your forms.