I left N.J. this year. What happens with taxes for both states?

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Q. I moved from New Jersey to Connecticut in early July. For 2022, I was in New Jersey for 189 days. How should I handle the state income taxes in both states? I am retired and currently on Social Security.
— Unsure

A. Congrats on your move.

But depending on your income level, you could owe more in state tax because of the move.

Based on your move in early July, you will need to file two part-year resident state income tax returns, one with each state, said Neil Becourtney, a certified public accountant and tax partner with CohnReznick in Holmdel.

“You will need to split up your income between the two portions of the year based on the income you received while a New Jersey resident and the income received while a Connecticut resident,” he said.

If your total gross income reported for federal tax purposes is less than $75,000, or $100,000 for joint filers or head of household, then no portion of your Social Security benefits will be subject to Connecticut tax, Becourtney said. Otherwise, a portion of your Social Security benefits could be subject to Connecticut tax. New Jersey never taxes Social Security benefits, he said.

Your 2022 federal income tax return, though, will not be affected by your move, Becourtney said.

“One other thing to point out is that Connecticut imposes personal property taxes on vehicles, with the ability to potentially claim an offsetting income tax credit,” he said.

You may want to work with a tax professional who can look at your entire situation so you’re not in for any surprises come April 15.

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This story was originally published on Sept. 3, 2022.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.

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