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Old 11-14-2016, 06:01 PM
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Telecommuting from a different state, but changed W4 later in the year

I've been telecommuting in VA for a good portion of the year. I've paid taxes in VA for the past several years. Back in August I moved to NC, and I'm now updating my W4 form and also getting my State ID.
I've lived in NC during August, September, and October, but my withholding was done in VA. I'm looking for advice on updating my W4. Should I withhold more money for state taxes for the past 3 months, and will I get the VA tax withholding back at the next return?

Would taking an additional amount out of my paycheck to make up for those months work the same as making an estimated payment?

How does that work? Thank you for the help!



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Old 11-14-2016, 09:28 PM
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I've been telecommuting in VA for a good portion of the year. I've paid taxes in VA for the past several years. Back in August I moved to NC, and I'm now updating my W4 form and also getting my State ID.==>So I assume that you moved to NC from VA during the year of 2016, ten you are a part year resident of VA and also part year resident of NC



I've lived in NC during August, September, and October, but my withholding was done in VA.===>Correct as you need to pay tax to VA on your VA source income. As a part year resident of VA, you need to report VA source income that you earned from Jan 1 to before Aug to VA and also as a part year resident of NC, you need to report your NC source income that you earned from Aug to Dec 31 2016 to NC.

I'm looking for advice on updating my W4. Should I withhold more money for state taxes for the past 3 months, ====>>It depends; unless you already withheld form your paychecks for the last three months then i guess yes you need to do; in general, When you file Form W-4, your employer uses this information to withhold the correct federal income tax from your pay;Withholding allowances vary from person to person based on a number of circumstances, including:whether you're married or single or if you're single and have only one job or etc
The more withholding allowances you claim, the less tax is withheld from your wages. If you don't file a W-4, your employer must withhold tax from your wages at the highest rate. It'll be as though you're single with zero allowances.
If you're a parent, you'll claim child credits worth up to $1K for each eligible child. The number of withholding allowances you claim depends on the number of your eligible children and your income.
The IRS might ask your employer for your W-4 depending on your number of tax withholding allowances. If the IRS questions the number of exemptions you claim, you?ll have to justify your claim. Since your circumstances might change from time to time, it's important to review your tax withholding allowances on a regular basis

and will I get the VA tax withholding back at the next return?========>Possibly; I mean fed or state refund occurs when you pay more tax during the year than you actually owe. Since the majority of taxpayers are employed, this happens when too much is withheld from your paycheck each week. This is because withholding only estimates your tax but does not always reflect every credit and deduction you're going to take.If you find that you are consistently overpaying your taxes each year, you need to update your W4/nc 4 to reduce your withholding. This will put more money in each paycheck but will reduce or possibly eliminate your tax refund at tax time.


Would taking an additional amount out of my paycheck to make up for those months work the same as making an estimated payment?==>Correct;you may Additional amount, if any, you want withheld from each paycheck on form NC4

How does that work?====>> You can use extra withholding on one type of income to avoid paying penalties/interest tax ;extra withholding that comes late in the year is treated the same as if it was spread evenly over the year. You can use this approach to avoid late payment penalties



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