I worked in CA, retired, and receive a pension from the company. I am also a military retiree. I am now fully retired. I do receive some deferred income from my previous CA employer.
I now own a home in Utah and in California, living part time in each. We plan to change our domicile and make Utah our new domicile.
For paying state taxes to each state, do we:
- Declare all our income on the Utah state tax return (domicile state), and only a portion on the 2nd state of CA (based on days spent there), or
- Divide up income by time spent in each state, and file a proportion of that income on each state return? Or,
- Do you allocate the income based on the date that the pension check or dividend checks were received, and what state we were in during that time?
Some posts on similar questions state you proportion the income, and others say you must declare all income in the domicile state
I note that in TurboTax it asks you when you moved to the second state to determine your time spent in that state. If you ae going back and forth, do you just make up a date that would include the total days you spent in the 2nd state? E.g. If I spent 3 months in the 2nd state I would make believe I moved there 1 October (1 Oct -31 Dec = 3 months), and do this every year?
If you are allocating income based on the dates received and where you were, how do you do this in TurboTax?
FYI, the Utah tax authority states: ‘’A part-year resident is a person who is a resident for part of the year and a nonresident for part of the year. All income received during the period of residency is taxable in Utah, regardless of where that income is earned, unless specifically exempted.
The CA Tax authority states: ‘’As a part-year resident, you pay tax on all worldwide income while you were a resident of California.’’
