Moved from California to Florida.

[marcmoore]

I landed a job in Florida and my wife and I bought a house and move out of California June 21st to Florida. My wife is still working for a CA company remotely. I am working in and for a Florida based company.  We established residency in June as well.  Will we have to mail in our tax return?  What documents will we need? Can we deduct the moving expenses?  Am I missing anything I will need for the filing in both states?

[JBedford]

Hi, @marcmoore !

• Based on my understanding of your situation, you will need to file a part-year resident return for California. No reason that I can see why you would not be able to e-file this when the time comes.
• Remember, Florida does not have an income tax, so you will not need to file a return there. 
• You cannot deduct moving expenses on your Federal return, but may be able to on your California return. 
• You will need copies of all of your tax forms, e.g. W-2, 1098, etc. Additionally, you will want to keep documentation of your moving expenses, though you won't need to submit this with your tax return, only the amounts.
• Also retain your closing documents for the purchase of the house. Though you won't need those now, they may come into play if you ever sell the home. Additionally, confirm that your wife's employer is aware of the move, and has stopped withholding California tax. 

Hope this helps! 

[marcmoore]

Thank you JBedford - One more question, I understand that California is now paying out Middle Class Tax Refund for 2021. If I receive it before the end of12/31/2022 as we were a resident for all of 2021 can we keep that?  If we receive after 12/31/2022 will we then have to file 2023 California state income tax 0 income+ the Middle Class Tax Refund ?

[JBedford]

Hi, @marcmoore ! It does not appear that you will receive the Middle Class Tax Refund, as you are no longer a resident of California. To be eligible, you have to be a resident when the payment is issued. Therefore, you should not have a California filing requirement after this year. Hope this helps! 

[marcmoore]

Thank you, but what happens if I do. The reason is my son moved his family as well and did receive the refund. 

[JBedford]

You still shouldn't have to file a California return, as a CA tax refund would not be CA taxable income. The only possible complication would be if you itemized your deductions on your federal return. In that case, the refund might be taxable federally, just as any other state refund could be. And if they send it to you, then I guess it's up to them to come after you if they want it back. 😁 You would think the fact that they're mailing it to FL would clue them in!