I have questions regarding state tax when moveing from CA To WA.
If I have worked physically in CA till May 31, 2020 and moved to WA in June 1, 2020
I started taking days off for two months by using vacation time accrued from June 1 2020.
Then, resign and cash out all my remaining vacation time after two months vacation.
then, selling house in CA after moving to WA.
Where do I pay state tax of items below in this situation ?
#1. Income till 05/31/2020
#2. Income during two months Vacation
#3. Income from cashing out vacation time
#4. tax regarding selling house in CA
I appreciate your answer, in advance.
You'll need to sign in or create an account to connect with an expert.
1) ALL your income while still a CA resident is taxable by CA.
2) For tax purposes, CA regards you as a resident until you change your domicile to another state. See "Change of Domicile" on page 10 of this CA tax publication for an explanation:
https://www.ftb.ca.gov/forms/2021/2021-1031-publication.pdf
3) After you become a non-resident of CA, CA can still tax your CA-source income. Income such as vacation pay and severance pay is considered CA-source income if it was earned by work performed in CA.
4) A capital gain from the sale of property located in CA is taxable by CA. If the home you sold was your principal residence for 2 of the 5 years leading up to the date of sale, you would qualify for a capital gains exclusion according to IRS rules.
#1 - CA
#2 - depends if you established residency in WA - lease / home ? driviers license? voter's regtrations card? etc?
#3 - see #2
#4 - why are you moving to WA - was it for convenience or did you find a job that required you to be in WA???
Thank you for answer
regarding your question
#2: buying/leasing home. Actually permanent move to WA
#4: My wife will find work in WA and I am retiring.
1) ALL your income while still a CA resident is taxable by CA.
2) For tax purposes, CA regards you as a resident until you change your domicile to another state. See "Change of Domicile" on page 10 of this CA tax publication for an explanation:
https://www.ftb.ca.gov/forms/2021/2021-1031-publication.pdf
3) After you become a non-resident of CA, CA can still tax your CA-source income. Income such as vacation pay and severance pay is considered CA-source income if it was earned by work performed in CA.
4) A capital gain from the sale of property located in CA is taxable by CA. If the home you sold was your principal residence for 2 of the 5 years leading up to the date of sale, you would qualify for a capital gains exclusion according to IRS rules.
Thank you
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
myamica03
New Member
COTax23
New Member
GWA83011
New Member
TAPS2050
New Member
thegoodreturn
Returning Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.