Lived in CA for 11 months, Georgia for 1 and my GA taxes are huge!

[Deebler]

Lived in CA for 11 months then moved to Georgia for 1 and my GA taxes are huge! They are actually more than TWICE the amount of my CA taxes! What am I doing wrong? Thank you all!

[ErnieS0]

Are you filing a part-year Georgia return? The GA return will show you boxes for Georgia and Other State.

Enter what you earned in GA in the Georgia box and the amount earned while living in CA in the Other State box.

You only have to report one month of income to GA.

[Deebler]

Thank you for the fast reply! All income came from a CA rental property so I made nothing in Georgia but lived there for one month of the year. That is part of the confusion. Do I list one month of CA rental income on the GA return since I was living there at the time or all should be in CA? Thank you again! Cheers.

[MaryK4]

Yes, on the Georgia Part-Year return you report the income while you were a resident.  Since you also have to report the income for the rental in California, you can do the credit for taxes paid to another state on your Georgia tax return.   @Deebler

[Deebler]

Thank you again! I'll have to review the GA state return but I still find it a bit confusing... If I'm understanding correctly, I'll be reporting the same rental income for the one month that I lived in Georgia of 2021 to both GA and CA and then do a credit back from the GA return. So, interestingly, this could happen for all twelve months of this year when I file next year. Example: 12 months of 2021 CA rental income gets reported on both CA and GA state returns, then the 12 months of income are credited back to the GA return since they were also reported and taxes were paid in CA. Is this correct? If so, what a strange system! 🙂

[MaryK4]

Yes, that is correct.  The general rule is residents pay tax on all income regardless of where it is earned.  Nonresidents only pay tax on state-source income (income earned in the state). So that you are not double-taxed, you get a credit in your resident state.  It is a bit strange but it seems to work... @Deebler