Dual state residency question

Bonaero88 — Wed, 26 Jan 2022 21:17:51 GMT

Thanks a lot for organizing this.

Here is the situation with my wife and I. We had been NJ residents for the last few years but moved permanently to California at end of March 2021. We plan to file jointly for 2021 and wanted clarification on dual state taxation.

For my wife:

For the 3 months in NJ she worked and received wages for a NJ company (Jan - March 2021). After we moved to California, she worked and received wages for a California company for the rest of the year.

For me:

At the start of 2021, I started working for a company in California. For the first 3 months, while we were in NJ, I worked remotely from NJ. At end of March, we moved permanently to CA and still worked for the CA company.

My spouse’s case is clear but want to understand my case a bit. Are these assumptions correct?

We file as part resident for NJ and part resident for CA
For NJ, the state wages (after all pretax is accounted for) will be the sum of my wife’s wages for the NJ company she worked for and my wages for the 3 months I was living and remotely working from NJ
For CA, the wages will be the sum of my wife’s wages for the CA company she worked for and mine will be the wages for the rest of the year I have been working in CA for the company
Even though the company is in CA, the wages paid while working remotely from NJ is not considered CA income
Is there an order to the state filing, i.e. should I file one of them first before the other? Wondering if I will need info from one state filing to include in the other?

Thanks

Re: Dual state residency question

MaryK4 — Wed, 26 Jan 2022 21:39:26 GMT

Your answers are correct, but I write them out just to be sure I hit all the points for you!

Yes, you file a Part Year Resident Return for New Jersey and California (technically the NJ is a resident return with resident dates).
Yes your New Jersey income will be your wife's NJ wages and your wages while working remote in New Jersey
Yes, your California income is your wife's CA wages and your wages for the time you lived and worked in California, the remote income is not California income.
In your case, since it is Part Year for both states and there is no income that is reported in either state, it does not matter which you do first.

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Dual state residency question

Re: Dual state residency question