Hi,


I am on H1B and my wife and kid are on H4. We were here in US since June 2007. When I got my W2, my taxes are all based on NJ, none for KY. Do I still have to file my tax for KY?


Thanks,
Andrew

Andrew:

You need to file tax returns in BOTH states.

Assuming you never worked or lived in NJ, you would file as a non-resident and apply for a total refund of the withheld NJ taxes, as NJ has NO LEGAL STANDING to tax your income.

You would then turn around and take that refund to pay Kentucky the taxes you legally owe that state, because both lived and worked inside Kentucky's borders.

Thanks for your answer. The problem is, our company's accountant advised me just to file the NJ return and I already did. Will this create a problem for me? If I will file for KY tax now, what will be the penalty since April 15 is over? Thanks again.

Your accountant was wrong; you have the LEGAL obligation to file the KY tax return and, yes, a late filing/payment penalty will probably be imposed (though you CAN request that penalty be waived).

I just checked my refund status online and showed me this status:

Refund Status Results
Your tax refund was mailed on May 9, 2008. If you do not receive the refund by June 6, 2008, please contact us again. We are unable to take any action until then.

Please read the following information related to your tax situation:
Tax Topic 203, Failure to Pay Child Support, Federal Non-Tax and State Income Tax Obligations
Please Note:
Your refund may be reduced to pay a past due obligation such as child support, another federal agency debt, or state income tax. If this applies to you, the Financial Management Service, who issues IRS refunds, will send you a notice informing you of any offset they have made. The details of the debt are not provided to the IRS. Please do not call us to inquire about the details because we will not be able to answer your questions. Instead, direct any questions you have about the offset or debt to the agency identified on the notice.


Would you know what this means? I just got here in US last June 2007 on H1B status and this is my first Tax return. Thanks.

I actually called FMS and told me that they don't have any record of any debt for my SSN.

Thanks.

You must file KY tax return and pay taxes to KY. If you don't do this, KY may send you a tax you owe statement even after couple of years.

You may need to amend your NJ tax return.