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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.