Skip to main content
June 1, 2019
Question

Does California tax income earned from other states?

  • June 1, 2019
  • 4 replies
  • 0 views

I moved to California from Texas (no state income tax) in January 2017. If I include my Texas wages, my tax liability for California increases. Is this correct?

4 replies

Lisa995
Employee
June 1, 2019
Did you earn the Texas wages while living in CA?  

If you weren't a resident of CA the entire year and still lived in TX and had some TX income in January sometime, you  should file a Part Year CA return.
♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪
SlonghornAuthor
June 1, 2019
I earned all Texas income while living in Texas. It was less than a full month though (but got paid out a few months in vacation accrual). I did complete a CA 540NR and column E is correct, but total taxable income is in between the federal amount and CA earned amount.
Employee
June 1, 2019

Based on the information you provide I would consider you are California resident. 

California residents - Taxed on ALL income, including income from sources outside California.

Follow this link for additional information https://www.ftb.ca.gov/individuals/filertn/nonresidents-part-year-residents.shtml#residency_status

February 15, 2020

Hi! I'm having this same issue - I lived in Texas and earned money there from Jan 1st to March 31st 2019. After I moved to California on April 1st, I started a new job and paid CA taxes. When I enter my W2 information for jobs I had in Texas, my California state tax increases. How can I owe California state taxes on money I earned as a resident in Texas with a Texas company?

Lisa995
Employee
February 17, 2020

You should be filing a CA part-year return (since you moved there in April), not a full year resident return.

♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪