05 Nov I moved mid-year How should I handle state taxes?

Q. I recently moved from New Jersey to Washington State state to provide help with child care to my daughter’s two young children. I found a home there. How do I divide tax concerns between the two states? I had to sign a lease and provide rent payment as of March, and I’m continuing to pay rent to for my New Jersey rental. Then I had to break the lease with a two-months rent penalty for the Jersey apartment because I could not afford both places. I officially moved to Washington on April 10. What happens with state and federal taxes? Should I stay with my New Jersey CPA or get someone based in my new state?
— Babysitter

A. Dealing with two states may seem complicated.

But it’s not that bad.

For starters, Washington State does not impose a personal income tax, said Neil Becourtney, a certified public accountant and tax director with Smolin, Lupin & Co. in Red Bank.

“For 2024 in addition to filing a Federal income tax return you will need to file a part-year New Jersey resident income tax return, reporting the income you received during your New Jersey residency period through April 10,” he said, recommending you continue to use your longtime New Jersey CPA for the preparation of your 2024 income tax returns.

Even if you had moved to a state that does impose a personal income tax such as California, your New Jersey CPA likely would have been more than capable of handling the split-year resident filings, Becourtney said.

“In 2025 and future years, as long as you do not find it essential to meet in person with your tax preparer, your New Jersey CPA can continue to prepare your federal income tax returns,” Becourtney said. “Often tax preparers do not meet with their clients, instead receiving tax information either electronically, via private courier or through regular mail.”

Becourtney reminds you to be sure to contact all third parties that you have financial accounts with including banks, brokerage firms and retirement plans to provide your new address so that the various 1099 forms are sent to you in Washington early next year.

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This story was originally published in November 2024.

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