tax question re: moving to another state
I moved from MD to PA in October...I worked in MD for most of the year, and in PA after the move. I know I need to file a tax form in both states for this year.
My question is, I won't be working in MD next year, since I moved. What do I do about estimated taxes for MD? Obviously the amount I will actually owe in MD for 2008 will be $0, since I don't live or work there anymore. Will I still have to make the estimated tax payments in MD for 2008, or is there a way to notify the MD authorities that I moved and no longer work in the state?
If I do have to make estimated tax payments in MD for 2008, what do I do when the time comes to file next year? I won't have anything to file in MD, so how would I get my '08 estimated payment $$ back?
Re: tax question re: moving to another state
You pay taxes on what you have earned in the state you earned it in. If you are in PA for 2008 I don't know why you are concerned about taxes in MD.
Compute the amount you earned in MD 2007 and pay taxes on that amount. If you have been making estimated tax payments while in MD 2007 deduct that from the amount you owe because you already paid that in the estimated tax payments.
The tax form rules (or turbo tax) will help a lot with this.
Re: tax question re: moving to another state
also, since you resided for more than half of the year in MD, you'll still have to file a resident tax return for MD and a non-resident tax return for PA. Turbo-tax or a similar program will be highly helpful in getting the tax (and tax credit) filing correct.
But on the subject of estimated taxes, as Deo says this follows the source of your income and nothing else.
Re: tax question re: moving to another state