[bkapoor]

Hello:

I was living in CT during the beginning half of 2005 on an F1 visa. I graduated and moved to Pennsylvania in May 2005 and have been on an OPT and then an H1B visa for the remainder of the year. I have 2 W-2s : one from my university in CT and another from my current employer in PA.

Since I had earnings in 2 states, I am required to file returns in both (as a part-year resident). Do I need to report my earnings for the entire 2005 tax year to both states (as reported on my Federal 1040NR-EZ form) ? If so, do I have to file additional forms to make sure that I do not end up paying double taxes ? Or, can I just report only my "state" income to the individual states based on the respective W-2s ?

I realise that this is a very specific state-oriented question and this is probably not the right forum for such a query. But I am hoping that someone who has been in a similar situation might be able to provide some direction. In short, I would like to know if it is a norm to :
a) report the entire year's income to both states and file additional paperwork to exclude the out-of-state income, OR
b) report only the income earned in a state to that state

Thanks a lot,

Bhavna

[Catseyes]

That's funny because I lived for 5m in PA, and then moved to CT, having income in both states.

So, yes you are a PY for both.

Now, PA is easy because there is a tax rate ( 3.07% ). As a PY for PA, you have to report income during your residency period in PA : interests, income...

As a PY in CT, same story : the income that is taxable in CT is the income that was generated when a resident of CT.
However, the form for CT asks you to report you federal income ( PA + CT ) on line 1. But then, there are schedules to differentiate what was from which state : CT 1040 AW and CT-SI .

[bkapoor]

Thanks Catseyes !

Appreciate your prompt and precise response. :)

-Bhavna

[AtlantaTaxExpert]

Catseyes guidance is accurate.