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Home > Money & Services > Taxes   »   Taxes for two States

 
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Old Feb 3, 2006, 06:54 AM
psnarang
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Taxes for two States

I have been in US from 2004 on L1 visa, and last year my company filed a return for me.I was transferred from Helena,Montana to Minneapolis and I travelled on my car and took my things along with me.
By what rate I can claim the transportation.What form should I use to claim the amount.

I was paying some medical insurance from my pocket for first six months of year 2005.
Can I get benefit for the same.What form should I use to claim the amount.

I have two w2 forms and no form does not reflect that i paid anything as insurance.

How can I show my salary for compution of tax for two different states.

What form should i use to fill my Fedral Incometax return

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Old Feb 3, 2006, 08:46 AM   #2  
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Psnarang:

You can claim the moving expense mileage on Form 3903. There are two mileage rates (I believe it is 40.5 cents from 1 Jan to 31 Aug 05, and 48.5 cents for the rest of 2005). Check the instructions for Form 3903 for confirmation. Both form and instructions can be download from www.irs.gov.

Unless you are self-employed (get paid under Form 1099-MISC), it is very difficult to deduct insurance costs. First, you have to itemize. Second, the amount that represents 7.5% of your adjusted gross income is not deductible. It is unlikely that you can deduct your medical insurance costs.

You will have to file state income tax returns for Montana and Minnesota to reflect income earned in each state. Hopefully, the W-2s break out the income as such.

Since you will be filing Form 3903, you will need to file Form 1040.

If this seems too difficult, I am available to prepare your return. Contact me at [email address]. You will find my fees to be very good.
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