DonQ
Returning Member

3 State Taxes

I have a home in IL and received income from there until August (8 months income earned while in IL).  I took a new position that bases me in Arizona and have secured a second residence there (4 months income earned while in AZ).  My wife and children are staying in the IL home until they finish the school year - in June 2021.  Part of my time in my AZ job puts me at a facility in CA (let's say 1 month of my 4 months in AZ is actually 'earned' in CA).  My question is regarding multiple state taxes -- how to file and how to divvy up the income -- when I earn the income from different states, but technically have 'residence' in two states until my family can move to Arizona mid 2021.  I assume I have to file in sequence, possibly IL first as that state was where I lived and had the most income.  Then, file as a 'part-time resident' of AZ.  Then as a 'non-resident earner' of CA.  Is that right?  Seems everyone wants a piece of me!  I just want to make sure I do it correctly.  Also, my wife has income as well that is earned fully in IL.  We file 'married, jointly'.  Would her income need to be handled separately somehow?  She has 100% IL income so any percentages applied to my income within the 3 states should not apply to her income, I wouldn't think.  Our situation is confusing.  I'd appreciate any assistance in thinking through this.