TomD8
Level 15

State tax filing

1)  ALL your income while still a CA resident is taxable by CA.  

 

2)  For tax purposes, CA regards you as a resident until you change your domicile to another state.  See "Change of Domicile" on page 10 of this CA tax publication for an explanation:

https://www.ftb.ca.gov/forms/2021/2021-1031-publication.pdf

 

3)  After you become a non-resident of CA, CA can still tax your CA-source income.  Income such as vacation pay and severance pay is considered CA-source income if it was earned by work performed in CA.

 

4) A capital gain from the sale of property located in CA is taxable by CA.  If the home you sold was your principal residence for 2 of the 5 years leading up to the date of sale, you would qualify for a capital gains exclusion according to IRS rules.

 

 

 

 

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

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