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Level 1

Dual State Residency

I started working in California but still have a residence in Colorado will maintain a Colorado residence and residency. I understand Colorado has benefits so that I am not hurt too much filing in both states. How do I file?
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Accepted Solutions
Level 1

Dual State Residency

You are generally a resident of only one state.

When you complete the Personal Interview:

  1. Select Colorado as your state of residence on December 31, 2016;
  2. Answer "No" when asked if you "Lived in another state in 2016?" That question only applies if you changed your state of residence in 2016.
  3. Answer "Yes" when asked if you "Earned money in another state?", that state would be California.

The program will prompt you to prepare a resident Colorado tax return and a non-resident California return. Prepare the California return first.

You will pay CA tax on your CA income. CO will also want to tax that income, but will give you a credit (against CO tax), for the amount paid to CA on the same income.

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4 Replies
Level 1

Dual State Residency

You are generally a resident of only one state.

When you complete the Personal Interview:

  1. Select Colorado as your state of residence on December 31, 2016;
  2. Answer "No" when asked if you "Lived in another state in 2016?" That question only applies if you changed your state of residence in 2016.
  3. Answer "Yes" when asked if you "Earned money in another state?", that state would be California.

The program will prompt you to prepare a resident Colorado tax return and a non-resident California return. Prepare the California return first.

You will pay CA tax on your CA income. CO will also want to tax that income, but will give you a credit (against CO tax), for the amount paid to CA on the same income.

View solution in original post

Level 3

Dual State Residency

Your answer specifically referenced 2016.

Is this still the case in 2019?

I am a resident of CO but am moving to NC for part of the year, but will be moving back to CO for remainder of year.

I wish to maintain my CO residency.

 

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Level 10

Dual State Residency

Basically, yes that still applies.  NC charges a flat tax rate on NC-derived income.  NC's is 5.25%.  CO has switched from a flat 4.63% tax rate to one that gradually increases starting at income level $150,000 up to 6%.  You would prepare the NC return first and then claim a credit on your CO return against the NC tax.  You would probably not get a full dollar-for-dollar tax credit as the credit is capped against what you would owe CO on that same income.

Level 17

Dual State Residency

@cmcb2019 There is another wrinkle with regard to NC.   NC will regard you as a resident (and tax ALL your income) if you are "present within NC for more than 183 days during the tax year."   https://www.ncdor.gov/taxes-forms/individual-income-tax/individual-income-filing-requirements