turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

christinet94
Returning Member

Travel Therapist

Hi, 

So I am originally from Stl, MO (my driver's license is still the state of MO - where my parent's live). However, last year I moved to Colorado as a traveling therapist but put MO as my permanent residence (but I plan on moving back to CO in two years - which my car's insurance is listed in CO). But I currently live in CA and that's where I work but it is not my permanent address. 

I also do work as an independent contractor when I go back to CO. 

I am confused as to when I fill out 1040 or 1099 forms if I should put any deductions since my CA is a temporary address and I want my CO address to be my permanent but my driver's license is still MO. Will I have to pay and file taxes in all three states? Should I also file jointly with my spouse which he works remotely as an independent contractor for companies out of CA. 

 

The reason why I didn't switch my driver's license over is that it doesn't expire until nov 2022.  

Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
gkacpa
Expert Alumni

Travel Therapist

Hello @christinet94 , sounds like you have been very busy this past year! 

 

State issues are very common and confusing, I totally understand that this has created quite a challenging situation for you! 

 

Sourcing income from states typically requires you to file nonresident state tax returns with the states you derive income from but are not considered a resident. Each state is different as far as their reporting requirements, so I would suggest looking at the rules for each of the states you are traveling to/from to determine your reporting requirements and filing status as resident, part-year resident or non-resident.

 

There are many conditions, such as the number of days you are in the state and the amount of income you derive from the state. For example, in California, you will be presumed to be a California resident for any
taxable year in which you spend more than nine months in this state, along with your state of domicile (MO). Here is a link to California's residency rules for the 2020 filing year:

 

https://www.ftb.ca.gov/forms/2020/2020-1031-publication.pdf

 

Even though you may not have been in MO for most of the year, you may be technically considered domiciled in that state, therefore you most likely will need to file a resident return. 

 

Per the California domicile rules: 

 

The term “domicile” has a special legal definition that is
not the same as residence. While many states consider
domicile and residence to be the same, California makes
a distinction and views them as two separate concepts,
even though they may often overlap. For instance, you
may be domiciled in California but not be a California
resident or you may be domiciled in another state but be
a California resident for income tax purposes.


Domicile is defined for tax purposes as the place where
you voluntarily establish yourself and family, not merely for
a special or limited purpose, but with a present intention
of making it your true, fixed, permanent home and
principal establishment. It is the place where, whenever
you are absent, you intend to return. The maintenance
of a marital abode in California is a significant factor in
establishing domicile in California.

 

In order to grant some relief for paying double taxes, there are also multiple states that offer an "other state tax" credit, meaning that you can claim a credit for taxes you pay in another state if you are a resident of the state(s).

 

In regards to filing separately, there are other consequences that may affect your tax return that you should take into consideration before doing so.  I suggest once the 2021 TurboTax software becomes available creating a separate account for yourself to assess the impact of filing MFJ or MFS. 

 

I hope this answers your questions! I would suggest speaking to a tax expert for your specific situation. Please feel free to reach out with further clarification!

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies