The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Taxes in two states and retirement credit||Date: 8/19/2001 10:52 PM|
|Author: jailleres||Number: 53455 of 122998|
>>>I'm going to have a job in Utah at the beginning of 2002 and then a job in Colorado in the spring of the same year. My question is how are taxes affected? I assume I will have to do separate tax returns for each state in 2003...am I right or wrong?
You will have to do two state tax returns for your 2002 tax year. Utah will require you to pro-rate your Utah income vs other (CO) income, take that percentage, and use it to calculate your Utah taxes owed. They have a very good web site and you can find all the forms and info you need there. I did it last year (income in UT and WA) and it wasn't bad. CO probably has a similar method.
I'm going to have a job in Utah at the beginning of 2002 and then a job in Colorado in the spring of the same year. My question is how are taxes affected? I assume I will have to do separate tax returns for each state in 2003...am I right or wrong?
>>>I'm also trying to find more info on the lower income retirement credit that is supposed to be effective at the beginning of 2002. Does anyone have more info on this?
The Motley Fool home page has an article about the new tax law. Here is an excerpt from that article:
"Retirement savings credits: If your income is low enough, and you're willing to put some money into a retirement savings plan at work or into an IRA account, Uncle Sammy will give you back some money in the form of a tax credit as an incentive to help you save. It's a bit complicated, and won't take effect until 2002. But basically, if your adjusted gross income is $50,000 or less ($25,000 or less if you're single), you'll qualify for the credit. The lower your income, the higher your credit."
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