Question

Dual State Filing

Forum|Forum|3 years ago
February 25, 2023
1 reply
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I recently moved from California to Idaho. My former California employer continued to deduct California taxes from my pension payments after the move.

When doing my Idaho taxes TT asks for

my California adjusted income,

Income taxed by both states

and Income tax due to California.

Do I declare the California payments in both California and Idaho for the time I was living in Idaho, assuming Idaho will give me a credit for the over-payment to California?

And is the income tax due to California only the double payment or my total tax payment to

California?

E

ErnieS0

Yes and no. Your California pension is taxable in Idaho. Residents pay tax on income earned everywhere, so California pension income is included in Idaho taxable income.

However, you can’t claim any California tax on your Idaho return because your pension stopped being taxable in California after you became an Idaho resident so there is no double-taxed income. Your pension payer just made a mistake.

On your part-year California return, adjust your pension income to reflect the amount you received before moving out of state.

You’ll get a bigger refund from California but will probably owe Idaho tax.

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