General Question

nmguy's avatar

I'm currently living in NM, but will be moving to CA as soon as I sell my house. Which state should I claim for tax purposes?

Asked by nmguy (528points) March 9th, 2009
Observing members: 0 Composing members: 0

6 Answers

DrBill's avatar

The state you had earnings in. If that is both, claim part year resident in both.

AlfredaPrufrock's avatar

You file in both, according to your w2s.

Resonantscythe's avatar

Dr bill covered it. Anyway, if you haven’t moved yet, the whole thing is based on the past year, so basing it on the current situation would be inaccurate.

Mamradpivo's avatar

If you sell a house in NM in 2009, you can expect to pay taxes in New Mexico for 2009. If you earn wages in CA in the same year, you will owe taxes to the state of California as well. That’s just the way it goes.

SherriS's avatar

Unless you are in the military, you become a CA resident once you have moved to CA. You could still be considered a non-resident if your job has transferred you to CA for a temporary period of time. Once you have earnings in CA, you will have to file a tax return and be taxed on those earnings. If it’s a split year (ie earnings in both NM and CA), your CA tax return is pro-rated and, if NM has State tax (which it does!), you will need to file both States tax returns. You will get a credit for taxes paid to NM so that you are not paying taxes on the same money twice. This is probably the year you should consult an Enrolled Agent, the only federally licensed tax professional!

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