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2021 CA Part-Year Tax Residency
In late March 2021 I permanently moved from California to Washington state, and worked there until retiring in early July 2021. My wife and I were long-term California residents preceding 2021 but entered California in different years.
Turbotax (State-CA 2021 tax year) inquires whether we had "Joint Residency Status Same Time" before and during 2021, to which I respond "no" since we entered California in different years in the distant past. Yet when I review the state return later, Turbo Tax modifies my Residency Information response to "Were you a California nonresident during all of 2021?" to "yes" while leaving my spouse's response "no." The residency information then appears as:
- Did you become a California resident during 2021? Me: No; Spouse: No (consistent, ok)
- Did you become a California nonresident during 2021? Me: Yes; Spouse: Yes (consistent, ok)
- Were you a California nonresident during all of 2021? Me: Yes; Spouse: No (TT changes mine to 'yes')
What are the consequences of this? Is Turbo Tax correct in modifying my response?