I am filing as independent for 2020. I completed graduate school in CA in May 2020 as a resident from AL. While in CA I earned $800. I started working in TX in June 2020 and changed residency to TX. Do I have to pay CA or AL state income tax on my earnings from TX? What about paying CA or AL state income tax on my dividends or interest income?
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You will file a nonresident California return and report the earnings made in California while you temporarily lived there as a student. You will also file an Alabama part-year resident return, which will show you as a resident through the date you moved to Texas. The income earned in California will be taxed on your resident return, but you will also get a credit on your Alabama return for tax paid to California.
Texas has no state income tax and there is no state tax return to file.
Regarding your dividend and interest income, the total should be prorated based on the number of months you were considered an Alabama resident. You will be liable for Alabama income tax on the amount you allocate.
The first thing you want to do is make sure you've filled out the Personal Info section correctly:
It is recommended that you complete the non-resident return first (CA) to ensure accurate calculations.
You will file a nonresident California return and report the earnings made in California while you temporarily lived there as a student. You will also file an Alabama part-year resident return, which will show you as a resident through the date you moved to Texas. The income earned in California will be taxed on your resident return, but you will also get a credit on your Alabama return for tax paid to California.
Texas has no state income tax and there is no state tax return to file.
Regarding your dividend and interest income, the total should be prorated based on the number of months you were considered an Alabama resident. You will be liable for Alabama income tax on the amount you allocate.
The first thing you want to do is make sure you've filled out the Personal Info section correctly:
It is recommended that you complete the non-resident return first (CA) to ensure accurate calculations.
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