state taxes

Forum|Forum|4 years ago
September 30, 2021
1 reply
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hi,

I moved from California to Texas in mid Jan 2021 due to change of employment. In July 2021 I have realized some capital gains on stock sale. Do I owe capital gains tax to California? The gains were realized while being Texas resident.

Thanks

CharlesO

Employee Tax Expert

Hi Ashvar,

For tax year 2021 as long as you have established residency in TX you will file as a part year resident of CA and report the income you earned while you were living there.

Here's a good article on how to file as a part year resident:

Filing Multiple States

Of course, since TX does not have an income tax you will not have to file a TX return.

I hope this helps!

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ashvarAuthor

Level 2

Thanks CharlesO,

Yes since I have established TX residency, I will file return as a part year resident of CA. Another issue I have is my wife is remote to a CA employer but TX residency. Her employer stopped CA tax withholding after move to TX. So for her too, will the part year resident of CA situation applicable? Since we both moved in mid-Jan 2021 to TX.

CharlesO

Employee Tax Expert

Yes you are correct. Only her income earned while a resident of CA would be reported on the part year return. If your wife's employer stopped withholding when she moved they should be reporting only her wages earned in CA on her W-2 for CA.

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