In the tax year 2006, I lived and worked in Houston TX from January 2006 - June 2006. I then moved back to Iowa and worked the remainder of the year there. I had my taxes prepared with a professional Tax Preparer. In July of 2009 I received a notice that I owed the State of Iowa approximately $350.00 for the year 2006. I called the Iowa Tax agents and questioned this and was told that I had to claim the Texas money on my Iowa form and pay taxes on it. The money I made in Texas was on the Iowa forms. I was not hiding any money from them. I am wondering why I would have to pay taxes on money made in Texas when I lived there and worked there at the same time. It was not a situation of living in one state and working in a neighboring state. Since I received the letter stating I owed money I have talked to 3 different State Tax people none of them quite knowing the answer. Any information on this issue would be greatly appreciated. Thank You very much for your time.
1 Answer from Attorneys
The question is whether you were a legal resident of Iowa at the time. Your legal residency-and understand that means residency and not just where you lived-is determinative. If you were only in Texas for six months that may not be enough.
If you are a resident of one state and you make money in another state you're going to pay income tax on that money in two places-where you made it and where your residency is.
Related Questions & Answers
-
Husband caused tax liability I was not aware of on tax returns My husband filed... Asked 1/29/05, 11:38 pm in United States Iowa Tax and Taxation Law
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
