Part-Year Resident Taxable Income

[dhpoway17]

I moved from Utah to California last year. As part of the TurboTax filing process, I was asked about my income earned during my time in both states in the past year. I thought that this was asked in order to proportionately determine the taxes I would need to pay based on how much I earned in each state. I was confused after filing because I noticed that in Utah's tax return document, my "taxable income" was listed as the combined California/Utah income, and not the amount that I had specified when asked how much income I had made in only Utah. I'm sure I'm just confused as to how it works.

[DanielV01 · Accepted solution]

You are correct.  Utah actually is not taxing your California income, but it does factor it in.  What Utah is doing is pretending that all of your income is taxable in Utah, and then taxing you in proportion to the amount of income you actually earned in Utah.  

So, for instance, if you earned 50,000 overall, and 20,000 in Utah, Utah figures out what your tax is on 50,000.  Let's say it is 2000.  It will then take the percentage of income actually earned in Utah, in this case 40%.  Your Utah tax is 800 (2000 x 0.40)