Hello!
I am moving from CA to Louisville, KY but keeping my job with my CA-based employer. My employer also has offices in NY and TX. There are also many other remote employees scattered throughout the US. My employer will be updating my permanent residence and withholding the KY (and Louisville) taxes instead of CA taxes once my move is official. I have these questions about this arrangement:
1. Let's say I move to KY on June 1. Does this mean that I am a part-year resident of both CA and KY in 2021, and will pay some state income taxes in both states based on my dates of residence? In my example, would I pay CA taxes for all wages earned Jan 1 to May 31 and KY taxes for all wages earned June 1 to Dec 31?
2. In the scenario I outlined in question 1, CA has a progressive tax system and KY has a flat tax. For the CA taxes, do I pay according to the CA tax tables in the same way as if I was a full-year resident, or are there adjustments made by the CA FTB for part-year residents? An example: Let's say I make $20K in CA from Jan 1 to May 31, would I pay taxes on that in the same way as someone who makes $20K as a full-year resident?
3. If I make short trips to CA over the coming years for business, will those be taxed by CA as "duty days," or starting in 2022, will my wages be 100% taxed by KY?
