I've been through a very similar situation and wanted to share a few key points that might help clarify things for you: First, yes, you'll need to file part-year resident returns in both Colorado and Arizona since you moved mid-year. Colorado will tax income earned while you were a resident there (January-July), and Arizona will tax income earned while you were an Arizona resident (July-December). Your suspicion about continued withholding being wrong is likely correct. Many employers don't immediately update their payroll systems when employees move, so they continue withholding for the previous state. When you file your Colorado part-year return, you should be able to get a refund for any taxes withheld on income earned after you became an Arizona resident. Regarding Box 16 not adding up to Box 1 - this is completely normal! States have different rules about what constitutes taxable income, and some items that are federally taxable might not be state taxable (or vice versa). Don't let this discrepancy worry you. TurboTax can definitely handle your situation. When you get to the state section, you'll indicate that you moved during the year, and it will guide you through allocating your income between the states based on your residency periods. Just make sure you have your exact move date ready. One tip: keep documentation of your move date (lease agreements, utility connections, etc.) in case either state requests verification, though it's rarely needed for electronic filing.

I went through this exact situation two years ago when I moved from California to Texas mid-year! You're absolutely right to be concerned about the continued withholding - that's a very common payroll mistake that can actually work in your favor come tax time. Here's what you need to know: You'll file as a part-year resident in both states. Colorado will only tax income you earned while living there (Jan-July), and Arizona will tax income earned while you were an Arizona resident (July-December). The Box 16 discrepancy is totally normal - don't let that stress you out. Since your employer kept withholding Colorado taxes after you moved, you'll likely get a nice refund from Colorado when you file your part-year return. Just make sure you're precise about your move date when using TurboTax - it handles multi-state situations really well and will walk you through the income allocation process. One thing I wish someone had told me: keep your lease agreements and utility connection dates handy as backup documentation of your move date, though you probably won't need them unless there's an audit. Also, if your employer is still withholding incorrectly, definitely contact HR/payroll to get it fixed for future paychecks - it's easier than waiting for a refund. The whole process seems scary at first, but once you get through it, you'll realize it's much more straightforward than it appears!

I went through this exact situation when my mother passed away in September 2023, leaving me as trustee of her irrevocable trust. The confusion around partial-year filing requirements is totally understandable - even some tax preparers get this wrong. Here's what I learned: If the trust earned more than $600 in income from the date of your mom's death through December 31, 2023, you ARE required to file Form 1041 for that partial tax year. The trust's first tax year begins the day after the grantor's death, not January 1st. A few critical steps you should take immediately: 1) Contact the financial institution to get an exact breakdown of interest earned AFTER your mom's death 2) Apply for an EIN (tax ID) for the trust if you haven't already - you can do this online and get it instantly 3) If the post-death interest exceeds $600, file Form 1041 ASAP even if you're past the deadline The "advice" about not needing to file anything sounds questionable to me. Even if your mom's tax preparer handles individual returns well, trust taxation is a specialized area. I'd strongly recommend getting a second opinion from a CPA who specifically deals with estate and trust taxes. Don't panic if you need to file late - the IRS is generally more understanding of taxpayers who voluntarily correct mistakes. But the penalties for not filing when required can be substantial, so it's worth getting this sorted out properly.

I'm going through something very similar right now. My father passed away in October 2023, and I inherited an irrevocable trust with some investment accounts that have been earning dividends and interest. Reading through all these responses has been really eye-opening - I had no idea about the $600 threshold or that the trust's tax year starts the day after death rather than January 1st. The tax attorney handling the estate mentioned I might need to file something, but didn't give me specifics. Based on what everyone's sharing here, it sounds like I definitely need to get the exact income figures from the financial institutions and probably apply for that EIN right away. The interest and dividends from October through December were definitely more than $600, so I'm guessing I'm looking at needing to file Form 1041. Has anyone dealt with multiple financial institutions for one trust? I'm worried about coordinating all the different 1099s and making sure everything gets reported correctly. Also wondering if there are any advantages to distributing the income to beneficiaries before filing vs. having the trust pay the taxes directly. Thanks to everyone who's shared their experiences - this is exactly the kind of practical guidance that's impossible to find elsewhere!

This is exactly the kind of complex entity structuring issue that trips up so many real estate investors! I went through something very similar with my family's S Corp last year when we wanted to sell a rental property but needed the replacement property in an LLC for liability reasons. The key insight that finally clicked for me was understanding that the IRS looks at the "tax reporting entity" rather than just the legal entity name. Since a single-member LLC owned 100% by an S Corp is disregarded for tax purposes, both transactions effectively flow through to the same taxpayer (the S Corp) for 1031 purposes. I'd strongly recommend getting this structure set up ASAP if you're planning to list next month. You'll want at least 30-45 days of the LLC being operational before starting the exchange to show it's not just a tax maneuver. Also, make sure your qualified intermediary is experienced with disregarded entity structures - not all of them are comfortable with this approach. One other tip: consider having the new LLC obtain its own EIN even though it's disregarded. This makes the paperwork cleaner and helps establish it as a legitimate business entity rather than just a shell for the exchange.

I've been following this discussion with great interest since I'm dealing with a very similar situation. My S Corp owns two rental properties, and we're looking to sell one and buy a replacement through an LLC for liability protection. Based on everything I'm reading here, it sounds like the safest approach is to set up a single-member LLC owned 100% by the S Corp well before starting the exchange process. But I'm still confused about one critical detail: does the qualified intermediary need to be made aware of this disregarded entity structure from the very beginning, or can this be handled transparently? Also, has anyone run into issues with title companies or lenders who don't understand this structure? I'm worried that even if the tax aspects work correctly, we might hit roadblocks during the actual closing process when explaining why an S Corp is selling but we want the replacement property held for the benefit of an LLC. The timing pressure is real - we've already had two serious inquiries on our property and I don't want to miss the market opportunity while we're still figuring out the entity structure. Any insights on how quickly this can be set up properly would be hugely appreciated!

Hey! I'm new to this community and dealing with taxes for the first time too. Reading through all these responses has been really educational - I had no idea there were so many nuances to gambling winnings! Just wanted to say thanks to everyone who took the time to explain the difference between the technical requirements (all gambling income is taxable) versus the practical reality (IRS focuses on documented amounts over $600). It's helpful to see real experiences from people who've been in similar situations. One thing I'm taking away is that it's probably worth keeping better records going forward, even for small amounts, just to build good habits. And it sounds like there are some useful tools mentioned here that could help with tax questions as they come up. Thanks again for making this such a welcoming place to learn about these topics!

Welcome to the community and congrats on your first win! I can totally relate to the confusion - when I first started dealing with taxes, even small things like this seemed overwhelming. From what I've learned (and what everyone here has explained really well), you're in a pretty safe spot with that $20. The key takeaway is that while technically all gambling winnings are taxable, the IRS really focuses their attention on amounts where there's proper documentation - typically $600 and above where you'd receive tax forms. For your situation, you could go either way: report it as "other income" to be completely by-the-book, or just cash it and not worry about it since it's such a small, undocumented amount. Either choice is totally reasonable for a $20 win. The most important thing is that you're thinking about this stuff early! Building good tax habits now will serve you well if you ever hit bigger winnings down the road. And don't worry - we've all been beginners at this tax stuff at some point. The community here is really helpful for learning as you go!

I'm going through almost the exact same situation right now! I forgot to include a W2 from a part-time job I had earlier in the year and just realized it after submitting my return. Reading through all these responses has been incredibly helpful and reassuring. It sounds like the consensus is to wait for the original refund to process, then file the amendment. I was initially panicking thinking I'd get in huge trouble, but it seems like this happens more often than I thought and the IRS is pretty reasonable about honest mistakes when you correct them proactively. One thing that's been mentioned a few times that I hadn't considered is how this might affect my earned income credit. I have one dependent and my total income is in a similar range to yours, so I'll definitely need to calculate whether the additional income helps or hurts my EIC. Thanks to everyone who shared their experiences - it really helps to know I'm not the only one who's made this mistake! I feel much more confident about handling this properly now.

I went through this exact situation two years ago and can totally relate to the stress you're feeling! I also forgot a W2 from a short-term job and didn't realize it until after I'd already submitted my return. Here's what I learned from my experience: First, take a deep breath - this is way more common than you think and the IRS deals with it all the time. Second, your approach of waiting for the original refund before amending is absolutely the right call. I made the mistake of trying to amend before my original return was processed and it caused a huge delay and confusion. The thing that surprised me most was how the additional income actually affected my Child Tax Credit and Earned Income Credit calculations. With your income level and two dependents, you'll definitely want to run the numbers on both credits because the additional $5,850 could push you into a more favorable bracket for EIC or affect your CTC eligibility. I ended up using a tax professional for the amendment just to make sure I got everything right, but if you're comfortable with tax software, Form 1040-X isn't too complicated. The key is being thorough and keeping good records of when you discovered the error and why you're making the correction. The good news is that honest mistakes like this rarely result in penalties when you correct them proactively. The IRS actually appreciates when taxpayers take the initiative to fix errors before they're caught. You're doing everything right by addressing this now rather than hoping it goes unnoticed!