I'm dealing with a similar situation right now - Texas resident who worked an internship in New York last summer. Reading through all these responses has been incredibly helpful, especially the detailed experiences from people who've actually been through this process. One thing I wanted to add that I learned the hard way: make sure you understand your state's "statutory resident" rules. Some states (like New York) can consider you a resident for tax purposes if you spend more than 183 days there, even if you maintain your permanent address elsewhere. For a typical 3-month summer internship, this usually isn't an issue, but it's worth checking. Also, for anyone using tax software, I found that some programs handle multi-state situations better than others. TurboTax worked well for me, but I had to upgrade to their premium version to get the multi-state functionality. The cheaper versions often don't include state-to-state credit calculations. The biggest relief for me was realizing that this situation is actually pretty common - lots of students do internships in different states, and the tax systems are set up to handle it. It seems complicated at first, but once you understand the basic principle (file as nonresident in work state, file as resident in home state, get credit to avoid double taxation), it's much more manageable than it initially appears. Thanks to everyone who shared their experiences here - it's made me feel a lot more confident about tackling my own returns!

As someone who works in tax preparation, I want to emphasize a few key points that will make this process smoother for you: First, gather all your documents before you start filing. You'll need your W-2 (which should show California wages and withholding), any 1099s if applicable, and records of when you started/ended work in California. The timing matters because it affects how you allocate income between states. Second, California's Form 540NR is actually designed for exactly your situation - nonresidents who earned income while working in California. The form will walk you through reporting only your California-source income (that $12,800). Don't overthink this part. For Arizona, you'll file Form 140 as a resident and report ALL your income, including the California wages. Then use Form 301 to claim credit for the California taxes you paid. Arizona's instructions are pretty clear on this process. One often-overlooked detail: if you had any other income during the year (maybe a part-time job in Arizona, scholarships, etc.), make sure you properly allocate everything to the correct state. Only income earned while physically present and working in California gets reported on the California return. The good news is that at your income level, you'll likely get refunds from both states due to over-withholding. Employers typically withhold as if you'll earn that wage all year, but since you only worked three months, your effective tax rate should be much lower. Start with California first, then do Arizona once you have the California numbers. The system really does work to prevent double taxation!

I used TT for years but switched to FreeTaxUSA after the guarantee fiasco and it's been so much better. Paid $15 total for what TurboTax wanted $129 for lol

I had the exact same experience with TurboTax's "satisfaction guarantee" last year! What really got me was how they plaster that guarantee all over their marketing but bury the exclusions in tiny print that you only see after you've already paid. I ended up having to escalate through multiple customer service reps before anyone would even acknowledge that their advertising was misleading. The worst part is they know exactly what they're doing - their customer service scripts are clearly designed to wear you down and make you give up. I finally got my refund after threatening to report them to my state's attorney general office, but it took weeks of back and forth. For anyone still dealing with this, document EVERYTHING. Screenshot every page that shows the guarantee without clear limitations, save all your chat transcripts, and don't let them transfer you around in circles. Ask to speak to a supervisor immediately and reference their own terms of service if they try to claim you don't qualify. It's ridiculous that we have to fight this hard just to get what they advertised, but unfortunately that seems to be TurboTax's business model now.

Just want to emphasize something important about timing - since you cashed out your 401k in 2023, you should have already received your 1099-R by January 31st, 2024 for that tax year. If you're referring to the upcoming 2025 tax season for your 2024 returns, that would be a different situation. If you haven't filed your 2023 taxes yet and are missing the 1099-R from your 2023 distribution, you definitely need to contact Fidelity (or whoever your plan administrator was) immediately. You can usually log into their website and download a copy even if your account is closed. Don't file without it - the IRS gets a copy too and will notice if you don't report the distribution. Also worth noting that if you had federal taxes withheld from your distribution (which is common), that withholding will show up on your 1099-R and can be applied toward your total tax liability for the year, similar to how W-2 withholdings work.

Just to add another perspective on the charitable donations through payroll - make sure you keep your own records of these donations throughout the year! While your employer should handle the tax reporting correctly, it's always good practice to track charitable giving on your own. Some employers provide an annual giving statement that breaks down exactly where your donations went and the total amount. This can be helpful not just for tax purposes, but also for your personal records and if you want to see the impact of your contributions. If your employer doesn't automatically provide this, you can usually request it from HR or whoever manages the charitable giving program. Also, if you ever change jobs mid-year, having your own records makes it much easier to track your total charitable giving across multiple employers when tax time comes around.

Does anyone know if theres special requirements for filing 1120S if you started the scorp mid year? My accountant wants to charge me extra for a "short year return" but im wondering if the software can handle this?

Just wanted to chime in as someone who's been through this exact situation. I started with an S-corp last year and initially tried to find free options but quickly learned that business returns are a whole different beast from personal taxes. After reading through these comments, I think the key takeaway is that while free options don't exist for 1120S filings, there are definitely cost-effective alternatives to paying $800+ to an accountant. The mid-tier software options mentioned here (TaxAct, TaxSlayer) or newer AI-powered solutions seem like reasonable compromises between cost and complexity. One thing I'd add is to make sure whatever software you choose can handle things like shareholder basis calculations and K-1 preparation - these are crucial for S-corps and where a lot of DIY filers mess up. If your business is really simple with just you as the sole shareholder, the learning curve isn't too bad. But if you have multiple shareholders or complex transactions, might be worth biting the bullet on professional help at least for the first year.

Don't forget to consider state taxes too! I learned the hard way that some states (looking at you, New Jersey) have different rules for capital gains offsets than the federal government. I had stock losses I used to offset real estate gains, but NJ limited how much I could offset.

Great discussion here! Just wanted to add a practical tip from my own experience - make sure you have good documentation for all your losses, especially if you're dealing with multiple asset types like stocks and real estate. I had a similar situation last year where I used stock losses to offset real estate gains, but during my tax prep I realized I was missing some key documents like the adjusted basis calculations for my rental property and detailed records of some stock transactions. The IRS can be pretty strict about substantiating your losses, so having everything organized upfront saves a lot of headaches. Also worth noting that if you're using a tax professional, bring all this documentation to them early in the tax season. The interaction between different types of capital gains and losses can get complex, especially when depreciation recapture is involved, and they'll need time to work through the calculations properly.