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3 state return after moving look weird

I moved from CA to NJ in October. After the move I work in NY.

 

I know the NJ/NY tax implications. I'm not finished with state taxes yet, however there are return payment totals already that are indicating i will get ALL of my state taxes paid to CA (~15k) back and I owe NY ~10k. That seems completely wrong. Why would I get a state where I worked and lived for 9 months return all the taxes I paid? Is it just because my return isn't finished, or it's likely a mistake I made?

 

 

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2 Replies
JotikaT2
Employee Tax Expert

3 state return after moving look weird

It is probably an error in how you prepared the state returns.  California taxes you on all income earned while a resident or from California sources while a nonresident.

 

I recommend following the steps below to ensure your returns are calculated correctly.

 

In the My Info section of TurboTax, confirm that you have entered the correct state information: 

  1. Click Edit to the right of your name 
  2. Confirm your input under #2 Tell us the state(s) you lived in.  Be sure to answer the questions accordingly so New Jersey is reflected as your residence on December 31st. (see the sample screenshot below)
  3. Go back to the personal information section, and verify the mailing address and "Other state income" section.  Be sure to answer yes to the question asking "Did you make money in any other states?" to reflect your wages in New York. 

Residency question

 

Please note the following as it will affect the calculations: 

 

When you are preparing more than one state return, make sure you prepare the part-year resident California state tax returns first.   Be sure to answer the questions correctly to ensure only income sourced to that state specifically are reported.

 

Once you have entered all of the part-year resident state information for California, then start your New York nonresident state tax return.  This will ensure you receive any credits for taxes on income that may be taxed in New Jersey from your New York sourced income.

 

Finally prepare your New Jersey part-year resident tax return.  You should receive a credit for any taxes paid in New York for the income earned while you resided in New Jersey.

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3 state return after moving look weird

Thanks. The personal info was accurate but the allocations per state were not.

 

I might bump the threat with more questions as some of the state questions are pretty confusing. But the large issue is solved by doing state allocations.

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