Question

Moved to a new state (withholding didn't take effect until later) - am I allocating income right?

Forum|Forum|4 years ago
March 31, 2022
1 reply
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I moved from California to Georgia last year and have prepared returns for both states. My Employer took withholding for California through the end of June (~30 weeks) and starting in July changed to Georgia. However, I only worked 12 weeks of the year total in California (since I was flying back and forth).

On the state returns I allocated the exact income earned during those 12 weeks (based on my pay stubs) to California and the rest to Georgia. Given that I was paying withholding to California for ~30 weeks, TurboTax estimates a large refund from California and a large tax bill owed in Georgia.

Is this the right way to allocate income by state or should this be determined by residency? If by residency, what date determines when residency is established? I want to make sure California does not contest my return after I pay a fairly large tax bill in Georgia.

TurboTax Deluxe Online

AmyC

Employee

The paychecks and method you have described are good. Residency is established with several factors. Moving out of the state and creating a residency elsewhere with intent to stay in the new place is the main focus. Social group, license, voting, all things are moved over and show your intent to stay.

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