if i earn wages as part of a lawsuit settlement in a state i no longer live in do i need to do a state return for that state

Jquez — Mon, 05 Apr 2021 06:09:00 GMT

First off, I apologize for the length of this question. I lived in Wyoming until July 2020, a non-income tax state. I moved to North Carolina officially on July 9, 2020. I received a class action settlement last year from an employer I worked for when I lived in California in 2014. However, I did not receive a 1099. I simply received a check and stub.

The earnings section shows:

Wages $13x.xx

1099 MISC $27x.xx

Class Rep Award $0.00

GROSS SETTLEMENT AMOUNT $xxx.xx (this is the total of the above three lines)

The "Taxes, Deductions, and Adjustments" section shows deductions for the following:

Fed Inc Tax $2x.xx

Soc Sec Tax $8x.xx

Medicare Tax $2x.xx

State Inc Tax $1x.xx

CA SDI $1.xx

TOTAL DEDUCTIONS: $5x.xx

NET WAGES $8x.xx (this plus the total deductions line above equal the "wages" line in the "Earnings" box.

QUESTIONSs

How can I tell what needs to be reported since taxes have already been removed from this check? Since I do not have a 1099 how can I report this? Will the "wages" and "1099 MISC" lines under "earnings" needed to be reported separately in TurboTax even though they are on the same check?

I already have to purchase the North Carolina state TurboTax. Do I now need to purchase the Calfiornia state as well for this settlement?

I really appreciate your help everyone.

Re: if i earn wages as part of a lawsuit settlement in a state i no longer live in do i need to d...

JeffreyR77 — Mon, 05 Apr 2021 16:55:51 GMT

As a nonresident of California, you are only subject to tax on income earned in California.

You have to file a tax return in California only if your California adjusted gross income is greater than $14,797.

Interpreting the amount of wages and miscellaneous income reported you can safely not file a nonresident tax return to California for this settlement income.

It still needs to be included in your total income.

topic if i earn wages as part of a lawsuit settlement in a state i no longer live in do i need to do a state return for that state in State tax filing

if i earn wages as part of a lawsuit settlement in a state i no longer live in do i need to do a state return for that state

Re: if i earn wages as part of a lawsuit settlement in a state i no longer live in do i need to d...