CA pension when I live in New Jersey

[beth32]

I started receiving my portion of an ex-spouses pension from California.  California state taxes are taken out of it.  I live in New Jersey.  Will I also have to pay New Jersey taxes on it?   

[pmurphy3]

Yes, you will have to pay New Jersey taxes on the pension, but you will get a credit for the taxes paid to California.   A word of caution, you probably will not get the full credit for the CA taxes since NJ has a lower tax rate.

For future tax planning, please see if you can get the payor of the pension to not withhold CA taxes since you are a resident of NJ.

Alternatively, you can try to file non-resident for CA and put in a claim for all of the CA taxes withheld, but CA is very aggressive and assertive on trying to tax money that they believe is "CA" income.