I am filing jointly with my spouse. We have both been long time residents of California, however she moved out of the country in July 2024 so I am filing with the assumption that I am a California resident but she is not.
For capital gains, Turbotax is asking for "Residency Information" and giving me the selections of:
- Full Year CA Nonresident
- Part-Year Resident moved into CA
- Part-Year Resident moved out of CA
Which would I select here? None of these selections seem correct since I was a full time resident while she was a full time nonresident.
Thanks in advance
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First, in terms of residency. It is customary that when a taxpayer was a resident of a state but moves out of the country, that the taxpayer remains a resident of that state, unless they take positive steps to change their residency.
Please see this 2024 CA FTB publication 1031 (2025 is apparently not available yet, but it is unlikely to have changed); on page 5 at the bottom of the left column, it gives a checklist to help determine residency. Conversely, if you want to change your residency from CA to someplace else, these are the things that you have to show that you changed.
All this is to say that residency isn't just where you live, but has a tax definition as well. Read that publication and come back if you have more questions.
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