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New Member
posted Jun 4, 2019 8:00:56 PM

State tax on relocation benefits within same company

I recently moved from CA to WA with the same employer. I received X$ as lump sum as relocation benefits. Two questions:

1. Is this is CA income or WA income?

2. Related to #1: in what state I should deduct my moving costs?

Thanks!

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2 Replies
Level 15
Jun 4, 2019 8:00:57 PM

1.  If you received the lump sum while you were a legal resident of CA, it is CA income.  You were a CA resident until you established your domicile (your fixed, permanent home) in WA.  If you received it after you became a legal WA resident, it is WA income.

2.  Expenses related to a move OUT OF California are not a deductible expense on your California return.  WA does not have a personal income tax.

New Member
Jun 4, 2019 8:00:59 PM

Tom, thanks for your answer. What if (and don't ask why it happened) payroll processed my payment, and withhold taxes, a week before I moved, but I actually received payment to the bank account 2 weeks after I moved?