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Level 1
posted Feb 21, 2021 3:41:11 PM

Moved to another state (CA) but still working for company in old state (PA) - turbotax premier question

I moved to CA but is still working for a company in PA for the month of December so PA state tax was deducted on my paychecks in Dec as well. 

 

Under CA state tax section in the software, i was prompted to allocate my income between CA and PA, for which allocated all incomes including my W2 wage income. 

 

Under PA state tax section (its really confusing why the software doesn't just calculate based on what I entered in the CA section) , i was prompted to adjust my income again, which i did the same. But then into the next section, it asks me to enter "tax paid to another state" in order to calculate tax credit. I assume i don't need to include any income in CA since I already deducted the amount off PA income. Is this accurate assumption?

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1 Best answer
Expert Alumni
Feb 21, 2021 4:32:47 PM

If you filed a Part-Year California tax return, you would not include the California income since you are correct that you allocated it to California  This is to determine the credit for taxes paid to another state which only applies to income taxed in both states.  It more often applies to nonresident income.

1 Replies
Expert Alumni
Feb 21, 2021 4:32:47 PM

If you filed a Part-Year California tax return, you would not include the California income since you are correct that you allocated it to California  This is to determine the credit for taxes paid to another state which only applies to income taxed in both states.  It more often applies to nonresident income.