@reznathoth wrote:
Thank you so much for the detailed response, this helps very much.
So I paid May and June taxes to California. My employer told me that this next pay period should be withholding to Oregon now. So there are two months that shouldn't have gone to California.
Will California see and recognize the over payment and adjust accordingly on my tax return next year?
It's not on CA, it's on you.
If you file as a part-year CA resident and a part-year OR resident, Turbotax will ask you to allocate your wages to each state based on where you were living at the time. If it turns out that you paid more state withholding than the taxes you owe (because withholding went on longer after you moved) then you will claim a refund on your state tax return when you file it.
It is extremely critical that if you want to say you moved out of CA, you must take active steps to establish a new domicile in OR and abandon your CA domicile. If CA views your move as temporary, and that you are still domiciled in CA, they will assess full year taxes even though you moved, and you will have to fight to prove otherwise. (It is possible for you to be considered a legal full-year resident of California if your move was temporary, and temporary can sometimes mean years. Please read about the concept of domicile.)
