2020 tax’s involving two states?

Single male here, lived in Maryland most of my life but moved to Indiana for the last half of 2020 and currently am a resident of IN. I had 13k of income from W2’s and am currently waiting for an IN W2. I inputted all this data into turbo tax and it’s saying I owe the state of indiana $438 in state taxes and I’m not sure why. 

Why would you owe state taxes to a new state you just moved to? I’m not sure why coming from MD to IN is making me pay so much tax. Any idea?

8 Answers

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  • 1 month ago

    When you move from one state to another, money earned in that state is subject to state tax. If you didn't pay any, you'll owe it. Simple as that. 

    It really depends on when your residency in a state takes effect. Since you moved to another state for the last half of the year, you're going to owe tax in both Maryland AND Indiana. Indiana must not have deducted your state tax--the reason may be that you weren't considered a legal resident for a while after you moved. It takes time to establish residency in any state, and the requirements are different for each one. States do not have to collect tax for a previous residence in another state. 

  • 1 month ago

    Because you lived there part of the year and haven't entered any tax withheld in that state.

    It's not saying that you do owe that.  It's saying that you would owe that if no IN tax had been withheld.  After you get the IN W-2 and enter the amounts on it, Turbotax might say that you don't owe as much or that you don't owe anything.

    You should never do your taxes until you have all your W-2's.  The results will be wrong if you enter one W-2 when you don't have another W-2.

  • 1 month ago

    You don't use Turbo Tax for part year returns.  You will have to download the forms and do them by hand or go someone with professional level software. 

  • 1 month ago

    You will need to do a partial year return for each state and pay taxes for income you earned in that state.

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  • 1 month ago

    You would owe because not enough tax was withheld.  Are you doing a MD return as well?  You need to do both. 

  • Anonymous
    1 month ago

    You have not inputted all data yet.

  • ?
    Lv 7
    1 month ago

    You're waiting for an IN W2, so you probably haven't yet input any of the tax that you already paid to IN.

    You owe tax to each state based on how much you earned in that state or while living there.

  • 1 month ago

    You owe taxes to the state you work in.  Officially, even if you are only there for a business trip.  Professional athletes pay taxes in each state they played a game in.

    However, I believe you are completing your state tax returns incorrect.

    They are dated based on the dates you lived in the state.  The money you earned in MD goes on the MD tax return and the IN info goes on the IN tax return.

    -- if you have not received your IN tax return yet, you don't have the information to complete the IN tax return at this time. 

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