Mississippi help please

[Donny]

Miss part year resident-do they get credit for taxes paid to other state.

[Donny]

Miss part year resident-do they get credit for taxes paid to other state.

this is same return as above

This client works in Louisiana, 1099 R list Ms as payers st no in box 12

lives part year La, part year Miss.

would the 1099 be taxable to which state. 1099r is withdrawal from 401 from job in La.

[kcjenkins]

It usually works out best for him to be a full year resident of one or the other, although if he files on both states as a part year resident, neither will tax the money in the other state, and neither will give credit for the other state taxes. In my experience, LA is rough on non residents, so it may be best to be a LA resident who spends some of his time in MS. But I'd work it both ways. Actually, all three ways. Thank God for software that makes it easy. Just duplicate the federal enough times, then do the states each way.

However, if he has property in one state, and his driver's license, etc is in that state, then that should be taken as his 'resident' state, and let the other state be filed as non-resident, and take credit as allowed in the resident state for the taxes paid in the non-resident state.

[Lynn EA USTCP in Louisiana]

It usually works out best for him to be a full year resident of one or the other, although if he files on both states as a part year resident, neither will tax the money in the other state, and neither will give credit for the other state taxes. In my experience, LA is rough on non residents, so it may be best to be a LA resident who spends some of his time in MS. But I'd work it both ways. Actually, all three ways. Thank God for software that makes it easy. Just duplicate the federal enough times, then do the states each way.

However, if he has property in one state, and his driver's license, etc is in that state, then that should be taken as his 'resident' state, and let the other state be filed as non-resident, and take credit as allowed in the resident state for the taxes paid in the non-resident state.

AND his choice of residency will affect not only his income tax rate (MS is higher generally), but ALSO his homestead exemption. He needs to see which state has the higher property tax rate as well (MS is also generally higher). If he files as a resident of LA and nonresident of MS he will maintain his homestead exemption in LA and LOSE it for MS (and vice versa).

Lynn Jacobs, EA

Kenner, LA