topic Work in Ca but left for NJ due to COVID in State tax filing

Work in Ca but left for NJ due to COVID

taxsjik — Sun, 04 Apr 2021 16:50:04 GMT

Hi,

I worked and lived in Ca from Jan 2020 - March 2020. I left for NJ where rest of my family is because of the pandemic and remotely worked from there. I changed my home address in work HR system (to NJ), but work address stayed the same (Ca). How do I go about completing the 2020 taxes? Do I file for both CA and NJ ? My work has reported income and deducted taxes at source for the entire year in Ca, and reported income but deducted no taxes for NJ from April 2020- Dec 2020. (Thus, double reporting the income for this period to both Ca and NJ). Will appreciate the help. thx

Re: Work in Ca but left for NJ due to COVID

ColeenD3 — Sun, 04 Apr 2021 17:03:11 GMT

Yes, you must file both state returns as part year residents of each.

Part-year resident

If you lived inside or outside of California during the tax year, you may be a part-year resident.

As a part-year resident, you pay tax on:

All worldwide income received while a California resident
Income from California sources while you were a nonresident

CA PY

Part-year residents must use Form NJ-1040 and indicate the period of their New Jersey residency. The return should show only the income received during that period. Likewise, part-year nonresidents must use Form NJ1040NR and indicate the period of time they were residents.

NJ PY

Re: Work in Ca but left for NJ due to COVID

taxsjik — Sun, 04 Apr 2021 17:10:13 GMT

Thanks.

If I file part year in both states (which makes sense), does this also mean that I have to pay taxes in both Ca and NJ for the period of April through December (that would be double taxed) ? or I pay in Ca from Jan through March, and NJ from April - Dec.

Re: Work in Ca but left for NJ due to COVID

ErnieS0 — Sun, 04 Apr 2021 18:52:39 GMT

No. Nothing is double taxed because there is no overlap of income. Part-year residents only pay tax on income earned while they live or work in a state.

On your part-year California return, report the income you earned from January to March. Since your employer withheld tax for the entire year you will have a big refund. You are being taxed on three months income but had withholding for 12 months.

Report the rest of your income to New Jersey. You will owe nine months of tax since your employer did not withhold anything for New Jersey.

NJ like federal extended its filing deadline to May 17. You should be able to file CA and get your refund and use that to pay your NJ tax.

Related Resource:

2020 Income Tax Due Date for Individuals Extended