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Level 2
posted Mar 12, 2022 10:52:19 AM

Question about Part time residency in California and my paycheck

I lived in California for several years, and moved out of state on Jan 29, 2021.

From Jan 1 to Jan 29, while I was in California, I received one monthly paycheck, dated Jan 1 2021.  It was for my work performed from Dec 1 to Dec 31 2020.

I did not receive any other income while I was in California.  

 

My employer reports on my W2 only those funds that are RECEIVED for the calendar year.  It does not report on funds which were earned for the calendar year.

For example, my 2021 W2 shows funds from paychecks that I received only on 2021 - from pay checks received between Jan 1 2021 to Dec 1 2021.   Work performed Dec 1 to Dec 31 2021 will be included in my 2022 W2.

 

My first paycheck that I received after I moved out of state was received on Feb 1, 2021, and it was for the time period of Jan 1 to Jan 31, 2021.

 

Two questions:

1.  What income must I report to the state?  Only the income I received while living in the state, for the paycheck dated Jan 1, 2021 (for work performed from Dec 1 to Dec 31) ? 

 

2.  Must I report the paycheck I received after I moved out of state?  The paycheck dated on Feb 1, 2021, for the work performed on Jan 1 to Jan 31, 2021?  Because that would not be in line with how my employer reports the income.

 

I appreciate any help.

Thank you!

0 4 560
4 Replies
Level 15
Mar 12, 2022 11:04:10 AM

Report what is on your W-2. That is the document that the IRS will be using to compare with what you report. 

Employee Tax Expert
Mar 12, 2022 11:15:16 AM

Employers must report W-2 wages on a cash basis. Therefore, any wages they paid in 2021, would be on your 2021 W-2, even if they were earned in 2020. W-2's are not reported on a calendar year or accrual basis. Please enter your wages as they are reported on your W-2. 

 

In addition,

  1. Since you earned your first paycheck of 2021 while a resident of California, then it would be taxable in California for the period you were a part-year resident. 
  2. The second paycheck would be taxable to the state you relocated to, unless you moved to a state that has no income tax. 

@skevich21

 

 

 

Level 2
Mar 13, 2022 5:46:01 PM

Thank you!  That is what is in line with what I have been reading elsewhere, too.  

Level 2
Mar 13, 2022 5:46:51 PM

I appreciate your quick and thorough answer.  Thank you!