Friday, February 27, 2009

Multi-state Tax Headache!

Anyone else out there filing taxes in multiple states? Anyone going crazy with it?

Taylor lived in MI Oct 2007-Oct 2008, but all taxes for 2008 were calculated and paid for CA (where he was living when he was hired by his airline in late 2007) Despite numerous requests, his airline refused to let him update his address of record until TWO WEEKS AGO. We didn't think it was too big of a problem at first because his parents own the house we lived in (in CA) and always forwarded our mail. Then we realized that it was a tax issue also...but too late. His payroll department say the funds have already been transmitted to CA, and they can't recall the funds. Unfortunately, when we enter that we were a non-resident all year, all the software can deduce is that we are military, and it just gets uglier from there.

I lived in MI from Jan 2008-Dec 2008, but TaxAct won't recognize my MI employment because we now live in GA. Even though my W2 has a MI address and the W2 has a MI employer ID number...it still calculates it as Georgia income. And we didn't live in GA until Dec 31, 2008. Right now it shows that we'll owe over $1700 in state taxes for states we didn't even live in!

I think it's time for professional help.

3 comments:

Rachel said...

AHH! We did multiple state taxes for 2007 and 2008! What a nightmare. We used H&R Block for 07return and a CPA for 08. Good Luck and break out the advil because it is a headache! We thought next year would be one state but like Taylor's company, JD's wouldn't change the NJ taxes for us so we paid into NJ some this year. You need to move to a state with no state taxes! It's easier! :)

Anonymous said...

I have to do multi-state every year, because I work in one state and live in another. Every year I swear I'm getting someone to do my taxes, and every year I put it off until April 15, and end up doing them myself. The worst was when I moved from Denver - I had CO, NC, and SC taxes, plus federal. What a nightmare! Good luck with yours - that's insane!

Janelle said...

I have definitely been there! In 2005 Justin and I lived in Orlando Jan-Mar. Then we moved to New Orleans from Apr-Aug. Then we lived in Virginia from Sept-Dec. It was a bit of headache to keep it all straight!

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