Hi,

I work for on H1B visa for a software consulting firm that is based Texas. They run the payroll in Texas and withhold Federal Tax but no state tax.

I was contracted to work for a client that has offices in 2 states where I worked in the following order for year 2006:
1. Worked in Louisiana for 3 months (March - May)- Drivers License from Texas, bank and correspondence address in Texas - all correspondence was sent to my wife's apartment in Texas
2. Worked in Kentucky for 4 months (June - Sept)- Drivers License from Texas, bank and correspondence address in Kentucky.

Currently, I am residing in the State of New-Jersey (wife moved here) and I work remotely (from home) for the client's office in Kentucky. I moved to New Jersey in Oct 2006 and have acquired a driver's license there. I plan to be a resident in New Jersey longer than 1 year.

How do I go about filing state taxes:
1. What states am I required to file taxes in?
2. Can I get any adjustments?

Also I have been on H1B visa all year for 2006, I assume that makes me a resident alien. What form do I need to fill for federal tax? What are the deductions n that I can take to determine my taxable income. I have moved between 3 states and I have been reimbursed by my company for one of my moving expenses.

AtlantaTaxExpert

Louisiana and Kentucky probably think they have a claim on some of your pay, driver's license notwithstanding.

However, if you lived in a hotel or a month-to-month apartment, I could argue that you lived there temporarily. Any tax you would owe would be minimal, so go ahead and file to stay legal.

You DEFINITELY have to file New Jersey as a part-year resident.

You ARE a resident alien. You MAY be able to claim the per diem deduction for your stay in Louisiana and Kentucky based on the temporary nature of the work there.