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Charles Markham
Charles Markham, Enrolled Agent
Category: Tax
Satisfied Customers: 660
Experience:  IRS Enrolled Agent, US Tax Court Practitioner
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Wisconsin. Started work in Nebraska Dec. 2009. filed nebraska

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Wisconsin. Started work in Nebraska Dec. 2009. filed nebraska income as non-resident, filed wisconsin as resident. could not sell the house. i moved to nebraska, wife stayed in wisconsin, kids gone. wife eventually moved to nebraska, finally sold house in october 2010. all my income from January 1, 2010 has been in nebraska. seems wisconsin wants more than their fair share. if i said i am resident of wisconsin, they want income tax on my nebraska income. i have not gotten a new drivers license, or car plates, as nebraska is expensive, need to do that now. i have filed out that wisconsin form to see if i am still a resident. they do not like it that my house did not sell, which i do not think is my problem, and i took a big lose on it. any advice on how to file resident vs non-resisiden to avoid this double payment of state taxes?
Submitted: 4 years ago.
Category: Tax
Expert:  Charles Markham replied 4 years ago.

TaxWhisperer :

Well, first off, you are eligible to take a tax credit on your WI taxes of all the taxes paid to NE.

TaxWhisperer :

You are having a Nexus fight with Wisconson. There's no silver bullet in these things. And as you note, you didn't re-register your car, drivers license, etc.

TaxWhisperer :

Where did you register to vote?

TaxWhisperer :

Please note that you have appeal rights on this process and you can take the matter to the WI appeals division and fight this all the way.

TaxWhisperer :

I would give them proof of your Nebraska residence, too.

Customer:

we have not registered to vote, no elections in nebraska to worry about until this fall. i can give them copies of my W-2's, bank accounts, power bills, etc.... that all show my nebraska address. will that help??

TaxWhisperer :

It all helps. Also, you have a lease or a deed in Nebraska.

Customer:

we purchased a lot to build on, i could show that, but i think the apartment leases would be better

TaxWhisperer :

No, purchasing land in NE would help too.

TaxWhisperer :

If you signed an agreement with a building contractor that would be helpful.

TaxWhisperer :

I would show proof of listing your house in WI. That it was on the market.

Customer:

ok, should i attach that to both the 2010 and the 2011 return? i had planned on filing the 2011 electronically this weekend, but i could file by mail and attach more documents

TaxWhisperer :

No, I would just e-file as usual. Are you filing a non-resident WI return or none at all?

TaxWhisperer :

All this documentation goes back to WI with your 2010 reponse.

Customer:

for 2010 i filed as resident, because i still had my house, for 2011 i was going to file as a part time resident, but i suppose i could file as a resident of nebraska.

TaxWhisperer :

What did you file in NE? a non-resident?

TaxWhisperer :

So what's the argument, you already admitted you're a resident. Now you want to argue you aren't?

TaxWhisperer :

If you're a resident you report ALL of your income from any state you earn it.

Customer:

for 2010, non resident in nebraska. i have not filed for 2011, but i was going to file as a part time resident for nebraska

Customer:

no, just trying to figure out the rules. i have working here since december 2008, just could not sell the house

Customer:

so botXXXXX XXXXXne: 2010 resident of wisconsin, non-resident of nebraska. 2011 resident of nebraska, non-resient of wisconsin, does that sound right?

TaxWhisperer :

Yes. You got it.

Customer:

ok, thanks

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