What is the correct address?

[Dan]

Question: What is the correct address?

1. First you live in one State, your income is derived from that State

2. Now you live in another State. You have been here since the beginning of 2009 (no income was derived from this State in 2008)

Do you enter the State address where you received your income, question 1 or it it where you live now, question 2?

Question: Are you required to do two State returns according to the above questions, or just one State?

Thanks for your response.

[TAXBILLY]

Your address is where you live when you file your return.

No state return where you live since you had no income from that state.

taxbilly

[kcjenkins]

In such a case, I have at least once, knowing how aggressive the new state is about demanding tax from anyone who files from their state, used the old address, then filed a Form 8822 a week later. It worked, the new state never got anything from the IRS, and we did not have to deal with writing letters to convince the new state that they were not owed a return. You can use the new address if you choose, just expect the client to later get a demand from the new state, since the IRS always gives the state information, based on the filing address on the return. I've even had a client get a PO Box in the old state, to use for filing, to avoid this where there was a lot of income involved.

[Dan]

In such a case, I have at least once, knowing how aggressive the new state is about demanding tax from anyone who files from their state, used the old address, then filed a Form 8822 a week later. It worked, the new state never got anything from the IRS, and we did not have to deal with writing letters to convince the new state that they were not owed a return. You can use the new address if you choose, just expect the client to later get a demand from the new state, since the IRS always gives the state information, based on the filing address on the return. I've even had a client get a PO Box in the old state, to use for filing, to avoid this where there was a lot of income involved.

Thanks KC

[taxtrio]

In Michigan I always file a Michigan return if there is a Michigan address. If you don't file the Michigan and show all the income earned in another state; then later, sometimes a lot later-- Michigan will just send you a heart-stopping bill for the Michigan tax on your AGI (less one exemption). This can really get the clients attention.

Clients don't like getting these kind of letters, so I prevent it by just filing the Michigan. Problem prevented.

Taxtrio

[Dan]

In Michigan I always file a Michigan return if there is a Michigan address. If you don't file the Michigan and show all the income earned in another state; then later, sometimes a lot later-- Michigan will just send you a heart-stopping bill for the Michigan tax on your AGI (less one exemption). This can really get the clients attention.

Clients don't like getting these kind of letters, so I prevent it by just filing the Michigan. Problem prevented.

Taxtrio

Question: Does this mean you file two State returns? Your income was from one State and you live in another State.

Question: Here is the situation. You live just across the border in one State and you drive to work in the other State.

[Bart]

Question: Does this mean you file two State returns? Your income was from one State and you live in another State.

Question: Here is the situation. You live just across the border in one State and you drive to work in the other State.

If you live in one state and work in a different state you have to file two state returns.

[Cathy]

In such a case, I have at least once, knowing how aggressive the new state is about demanding tax from anyone who files from their state, used the old address, then filed a Form 8822 a week later. It worked, the new state never got anything from the IRS, and we did not have to deal with writing letters to convince the new state that they were not owed a return. You can use the new address if you choose, just expect the client to later get a demand from the new state, since the IRS always gives the state information, based on the filing address on the return. I've even had a client get a PO Box in the old state, to use for filing, to avoid this where there was a lot of income involved.

I agree with KC. And be careful if you e-file the return using the client's new address. One of my clients who moved from Texas to Louisiana one year still had her bank account through Regions in Texas. Her refunds were delayed as her address on her returns indicated Louisiana (she had income from both Louisiana and Texas) and was kicked out of Regions system as a Louisiana address using a Texas routing number did not fly....just another throught. She still has her Texas routing number so we continue to have her checks mailed to her rather than direct deposited.

Cathy

[joelgilb]

In such a case, I have at least once, knowing how aggressive the new state is about demanding tax from anyone who files from their state, used the old address, then filed a Form 8822 a week later. It worked, the new state never got anything from the IRS, and we did not have to deal with writing letters to convince the new state that they were not owed a return. You can use the new address if you choose, just expect the client to later get a demand from the new state, since the IRS always gives the state information, based on the filing address on the return. I've even had a client get a PO Box in the old state, to use for filing, to avoid this where there was a lot of income involved.

I find that it makes more sense to use the new address and the do the following:

In IL I used to file a non-resident ZERO IL return to avoid them coming back years later looking for the tax on income derived form the previous states. Illinois is notorious for doing this. and the Zero return is no effort at all! Works for all states that I have seen.

[kcjenkins]

Yes, that is the other alternative. Depends on the state, tho, some state's non-resident returns are a real [expletive deleted] to do. :spaz: