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State taxes when moving inter-state midyear

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Tjjunior

Junior Member
What is the name of your state? CA (formerly WA)
I moved from Washington state to California earlier this year. On my last day of work, I changed my address with my old employer so that I would receive mailings re benefits and my final paycheck. Long story short, when processing my final paycheck, they took CA taxes out of it, even though I earned the money while I was in WA (which has no state income tax). To make matters worse, the last paycheck also included payout of unused vacation, so the amount was not insignificant.

I didn't realize this for several months. Once I realized it and asked my former employer if they could correct it, they said the money had already been paid to CA and they couldn't refund it to me, I'd need to take it up with the state. How would I go about doing so?

Thanks!

TJ
 


seniorjudge

Senior Member
I am not a tax attorney.

However, if you lived in California and earned money when you lived there, then they want their cut.

But you might talk to the taxing authorities in California; you would probably have to file an income tax return in California and ask for a refund.
 

abezon

Senior Member
It's fairly straightforward. When you file your part-year resident CA return this spring, you will state how much of your wages are CA-source wages & how much are not. CA will only tax you on the CA-source income for the period during which you were a non-resident. Be sure to save pay stubs so you can show that the money was earned outside of CA. Unfortunately, since you got that big bonus check, your total income for the year will be high, which means you'll pay more taxes to CA. Ask your tax pro to explain it to you when you file.

Be darn sure you go to a tax pro this year. If you go to HRBlock, pony up the $30 for their Peace fo Mind guarantee. They will pay the taxes if CA audits you & you lose.

Also, keep good track of moving expenses & itemized deductions (did you give away all kinds of stuff to Goodwill before moving? That's a charitable donation. Hope you keps records and got receipts.
 

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