Out of State Taxes
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Video
Amy Fox | 1/9/2013
Tax forms have been sent out and now it`s time for residents to begin filing. “This year and with the filing, the IRS is not taking returns until the 30th of January. I anticipate it’s going to be even more concentrated,” said Minot Liberty Tax Service Owner David Lakefield.
Last year, Dawn Seopa’s husband made the move from Minnesota to North Dakota, which made filing federal and state tax forms difficult. "We had to have someone do them and we`ll have to find someone here, in North Dakota, to do them too."
With more people moving to western North Dakota, Seopa and her husband aren`t alone. Tax service companies are expecting a big rush come February 1. “This issue usually comes up when you have multiple states or part year residency in one state or another, so that`s what really gets a lot of people confused."
"I think it`s much easier to have somebody else do it, so we know it’s right," said Seopa.
But, as Lakefield explains, each situation is different. "Some of these workers may still be required to file a tax return in their resident state,” he said. “Sometimes the income may be split between the two states. Some states will tax them on all of the income earned and give them a credit for them to pay another state."
When you go to file your taxes, it`s always good idea to have your personal information handy. This includes: having a social security number, your IRAs and W2s to alleviate any type of problem.
"The IRS is basically asking the preparers to keep a lot more information in their files too. I guess to basically back up the claim for their income tax credit," said Lakefield.
Lakefield says if you work in North Dakota, typically you will be taxed in North Dakota regardless of how long you`ve lived here.
As usual, taxes are due Monday, April 15th.
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