California State Tax

rpdressler · #1 (**permalink**) 03-25-2014, 11:24 PM

I moved to CA from NJ mid year and changed jobs. I know I have to file Fed, NJ, and CA and have started the process with my old accountant in NJ.

He noted that after filling in the appropriate information, I'm getting money back from the Fed, owe about $15 to NJ, but owe $500 to CA. His explanation was that while CA saw my yearly salary as $XX,XXX, I only had about half the appropriate CA state tax deducted (as I've only lived here for 6 months).

Is this a rule? Or do I just owe CA $500 because my employer didn't take enough out? Or do I need to talk to a CA accountant about how to correctly file in my new home state?

Wnhough · #2 (**permalink**) 03-26-2014, 01:14 PM

Quote:

Originally Posted by rpdressler

#1;I moved to CA from NJ mid year and changed jobs. I know I have to file Fed, NJ, and CA and have started the process with my old accountant in NJ.

#2;He noted that after filling in the appropriate information, I'm getting money back from the Fed, owe about $15 to NJ, but owe $500 to CA. His explanation was that while CA saw my yearly salary as $XX,XXX, I only had about half the appropriate CA state tax deducted (as I've only lived here for 6 months).

#3;Is this a rule? Or do I just owe CA $500 because my employer didn't take enough out? Or do I need to talk to a CA accountant about how to correctly file in my new home state?

#1;Correct as a part year resident of NJ/CA, you need to report your NJ source inceom to NJ and you also must report ONLY your CA source income to CA(since there is no Reciprocal Agreements between CA and NJ).

#2;agreed; as mentioned previously, you needs to PAY TAX TO CA ONLY ON YOUR CA SOURCE income, you don’t need to pay tax on your NJ source income to CA. I guess you can get refund from CA FTB.

#3;As mentioned above. Yu can talk to your accountant in CA for more info in detail on CA taxation rule.