I relocated from Virginia to New York on January 1st 2005. I started a new job on January 2nd. My wife did not work in VA in 2005. Both my wife and I received 1 paycheck from our previous employer in January 2005 for work performed the last week of 2004. My family stayed in Virginia to sell our home. Our home was sold on June 28th and the family moved to NY that day. When filing for 2005, do I file VA as a non-resident and my wife as a part year resident? If so, I would assume I would file NY as a full year resident? Also, how do dividends get divided as to which state gets the income tax since the accounts are joint and we were in different states for 6 months.
Thanks in advance
Alan

MrA2u1:

Your state filing proposal (I file VA as a non-resident and my wife as a part year resident) makes sense, but it may require that you file separately on your federal return. I recommend you both file as part-year residents for both VA and NY. Since states tend to tax only for income earned within the state on such returns, it should not make too much difference in how much tax you would pay.

As for the dividends/interest, split them equally between the states.

If this seems a bit complicated, you should get professional tax help.