how is it calculated when stock invested in two different states

[ssc317fp]

I worked in CA for 8 months, and CA has state tax. While in CA, let's assume I did stock investment and had loss of $1000.

Then I jumped to WA for another 4 months, and WA does not have state tax. While in WA, let's assume my stock has a profit of $2000.

Usually if I stayed in CA for the whole year, I only need to pay the tax of $1000. But since I moved to a state without state tax and profited there, should I pay less tax?

If so, will turbotax be smart enough to do? How does it know when do I move to WA? will my tax form get from robinhood tell it that?

[ErnieS0 · Accepted solution]

Part-year residents are only taxed on income earned while living and/or working in a state. In the case of stock sales, the sale date determines the state.

If you sold stock for a $1,000 loss while living in California, then the loss would deductible on your part-year California income tax return.

You $2,000 gain is free from state taxes since you sold the stock while living in Washington.

The California and Washington sales are separate for state taxes. On federal (which covers the whole year) you would add them together, giving you a $1,000 gain ($2,000 - $1,000).