I wanted to confirm the same thing - if I receive unemployment in CA after I change my domicile to TN (no state income tax), will I need to pay state income taxes to CA on 1) my unemployment income; and 2) additional household income earned by my wife in TN?
Another twist, we're selling an investment property in CA that closes in March, so we will have two months' of passive loss on that property + capital gain that will be exempt because it qualifies for the 2 out of 5 primary residence rule (i.e. we lived there before renting it out). We know we need to file a CA return. Just wondering if this additional connection to CA changes anything.
Basically, my base concern is that potentially accepting unemployment from CA for a couple more months could trigger tax liabilities on my wife's income. If that were to be the case, I'd decline the unemployment payments because that income would exceed the tax liability.
