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New Member
posted Dec 3, 2020 10:35:44 AM

I relocated from California to Texas. If I receive deferred compensation from my prior california employer, must I report it on a ca. return as well as my texas return?

The Deferred comp won't be paid until 2020.

0 4 445
4 Replies
Level 15
Dec 3, 2020 10:39:57 AM

First of all there is no state income tax in Texas so you cannot have a Texas return.  You say you will receive the money in 2020.  This IS 2020.  Did you receive the money yet?  Or will it be paid before December 31, 2020?

And...when did you leave CA?

New Member
Dec 7, 2020 8:26:34 AM

I'm so sorry for the delay in responding!  I left CA in 2020 and the money will be paid in 2021.

Level 15
Dec 7, 2020 10:35:00 AM

You may have to ask your California employer (or CA tax FTB) or wait until 2022 (when you receive your 2021 W-2).

The general rule is that income is taxable where received or earned.  You will receive it in TX but it was earned in CA and CA  will probably consider it CA source income.

 

Bottom line: if CA is in box 15 of your 2021 W-2,  CA will consider the amount in box 16 to be taxable by CA.  Your employer will, most likely, withhold CA tax.  Your chances of getting it refunded is unlikely. 

New Member
Dec 9, 2020 7:38:57 AM

Thank you, Hal_Al !

 

That's pretty much what I thought, but your expert confirmation makes it very clear.

Thank you again!