arizona: I moved to Arizona having worked previously in Colorado the same year. When I file in 2008 I want to know if I have to claim both states on each others tax returns and will that make me lose money? I am planning on using Turbo-Tax. Would it be easier to just go to H&R or some place like that?|||Some states require you to report all your income for the year, but pro-rate the tax due based on either how long you lived in the state or what % of income was earned in each state. Some states require you to report only income earned while living there, working there, or both. Either way, you do not lose money. In either case, also check the IRS publication "moving expenses" to see if you are eligible to deduct the cost of moving between states. If you live in one state while working in another, you must report the income to both states. However, you claim a credit on one of the two returns for the amount of tax paid to one state on the income taxed by both states, so you do not lose money. (Generally, the credit is for the amount paid to whichever state charged less, so your total tax, net of credits, is the same as if you paid tax only to the state with higher taxes.)|||http://www.revenue.state.az.us/ http://www.revenue.state.co.us/TPS_Dir/w鈥?/a> It gets a bit convoluted anytime you have income from different jurisdictions. Do a Google search for the definitions of 'Domicile' and 'Statutory Residence'. Then research the above sites and make a decision and use Turbo Tax.. Alternatively, look for a seasoned tax preparer.|||You must file a nonresident tax return in Colorado on the amounts you earned there. You file a resident tax return in Arizona on the amount you earned there. At least, that's the way most state taxes work. At the very least, you will file a different tax form in Colorado than you would if you'd lived there the entire year. Each state has different regulations on whether you declare out-of-state income and taxes paid when you file your resident tax return. Your best bet would be to call your state department of revenue and ask them whether you need to include out-of-state income for which you've filed a nonresident tax return in another state. Bottom line: you only pay tax on the income in each state once. You are not double-taxed. Also, you need to file with each state's department of revenue/taxing authority a declaration of change of domicile. Not many people are aware of this requirement - which will allow you to avoid further taxation by the state from which you moved. This becomes more important if you move to another state and die there; it will affect inheritance taxes, etc. It can also affect whether your voter registration can be challenged.|||You can use turbo tax, but you have to buy 2 states versions of it - when you fill it in, show that you were part year residents of each, and turbo tax will calculate who gets what.|||I would go to H&R Block, it would make it much easier. Plus, they choose to get you the most money back. You might have to file Colorado state. Send it to Colorado then you would do a Arizona State one as well.. I believe you would be able to combine the Federal Taxes. Since that goes to all the same place.