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ame12158
New Member

Active duty military retired in 2024, started new job while on terminal leave

Hello! My husband retired from the military on Oct 31st of this year. His HOR is CA. I forget what residency status we use for that but I think it's non resident or part year resident, but it ends up being where we pay no state taxes on his military pay to CA. He had 3 months of terminal leave to use up prior to his retirement and so he took that all right in the 3 months before retiring. During that leave, he started a new job as a civilian in August. We're confused on how to determine residency for the 2 states as we live in ID. The 3 month overlap is where we're confused. He was still a CA resident as he was still active duty but he also started paying taxes to ID with his new civilian job. He chose to become an ID resident as of Nov 1st, the first day of his retirement, where we own a home. How do we determine residency during the 3 month overlap? There was a section, I believe, that was asking how many days he was in CA and how many in ID. And at one piont during the state taxes, it was showing we owed them around $500ish and an underpayment penalty of $30ish to CA. We've never had to pay CA for anything. I did subtract his military pay from his total pay, when entering the income he earned in CA.  It also gives me a residency status for ID as nonresident and part year resident. Why would this be 2 different things? I did work a job for a couple of months and had ID taxes taken out and claim ID as my state of residency. When I click continue, the next page asks for his residency and then mine....I'm not sure what to enter for his: Part year resident or military nonresident? I enter full year for myself. Help! Thank you and sorry for all of the questions/confusion.

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