topic residing in a different state and income taxes in Self employed

residing in a different state and income taxes

mlbergman1 — Fri, 05 May 2023 15:11:51 GMT

Hello. I am contemplating moving to Colorado and keeping my California law practice (practicing remotely). Do I need to file my taxes in Colorado, California or both?

Thank you,

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Re: residing in a different state and income taxes

KarenL — Wed, 27 Oct 2021 23:33:38 GMT

You will need to file in both states. You will file as a non-resident in California if you move and work remotely from Colorado. California will tax income derived from California sources. So, if the practice is based in California, they will require that you file the portion of income derived from the state.

Re: residing in a different state and income taxes

mlbergman1 — Wed, 27 Oct 2021 23:52:34 GMT

Thank you. So to clarify, if my only income is from California clients, I don't need to file in Colorado for my business?

Re: residing in a different state and income taxes

KarenL — Thu, 28 Oct 2021 00:00:25 GMT

You will file all of your income for your resident state of Colorado. If the same income is taxed in both California and Colorado, Colorado will give a credit for a portion (or all) of the taxes paid to California.