Leaving California - filing final State tax return advice, tips, etc.?

[Ed_Flecko]

I will soon be moving out of California. I'm trying to do my homework regarding filing my final California State tax returns.

Somewhere, I recently heard that one of the most important things you need to prove to the California State Franchise Tax Board is the EXACT date of your final day as a California resident so you can be sure your final State tax filing is correct.

Does anyone have any experience with leaving California and filing your final taxes? Tips? Suggestions? Advice?

Thank you,
Ed

 

[JohnnyJohnson]

File it and don't look back!

 

[PandaBear]

My understanding is the exact date is needed so they know how much capital gain they should tax you on. You can't just move to another state and immediately sell your asset and claim state income tax there, instead of California. They would go after you if you do that, so the exact date is needed.

 

[02SE]

I'd suggest talking to a CPA who specializes in tax returns.

 

[We're Metals]

I will soon be moving out of California. I'm trying to do my homework regarding filing my final California State tax returns.

Somewhere, I recently heard that one of the most important things you need to prove to the California State Franchise Tax Board is the EXACT date of your final day as a California resident so you can be sure your final State tax filing is correct.

Does anyone have any experience with leaving California and filing your final taxes? Tips? Suggestions? Advice?

Thank you,
Ed

Yes, file as normal. Provide date you last earned income. They will want to know your home sale situation or living.
Jury Duty for LA County was tougher to get away from, lord.

Admittedly, I still have income in CA so I do still file but I was out of CA for a few years.

Probably not helpful but its not an issue. People move all the time.

 

[Ed_Flecko]

My understanding is the exact date is needed so they know how much capital gain they should tax you on. You can't just move to another state and immediately sell your asset and claim state income tax there, instead of California. They would go after you if you do that, so the exact date is needed.

This is my understanding as well. I'm just not sure what type of "proof" would be acceptable to the Franchise Tax Board Brownshirts..



Ed

 

[Cujet]

Ask Grok3 also. You'll likely get the most accurate answer.

Where are you heading?

 

[Ed_Flecko]

Ask Grok3 also. You'll likely get the most accurate answer.

Where are you heading?

I haven't really decided, but it will be somewhere in the Western United States. Right now, I'm most interested in Wyoming. I might consider Idaho or, possibly, Nevada.

Ed

 

[slacktide_bitog]

I haven't really decided, but it will be somewhere in the Western United States. Right now, I'm most interested in Wyoming. I might consider Idaho or, possibly, Nevada.

Ed

You'll have to wait until you move to the new state. Otherwise, you're still legally a California resident until you actually move and have a new address.

 

[2005jettatdi]

I am a CPA. When I fled Washington state in 2011 the exact date of our move was easy to determine. Even though Washington does not have an income tax, Arizona does, so it was important to establish when Arizona got to start taxing us.

I have done many California returns for people who fled to Arizona. I have not seen problems come up over the date of the move. Keep in mind, California still gets to tax most California sourced income. California does NOT get to keep taxing a pension, even a state of local government pension, once your residence is in another state.

 

[SC Maintenance]

Is there something special about leaving California?

I have moved states multiple times. I considered my new date when my employer started collecting state income tax for the new place. I suppose if you don't have employer, or you have residual income in the state your leaving it could get dicey?

 

[PandaBear]

This is my understanding as well. I'm just not sure what type of "proof" would be acceptable to the Franchise Tax Board Brownshirts..



Ed

You probably can call and ask them (and they usually have a form to declare and acceptable support document list like lease signed / termination, new job starting date / pay stub, utility bill, children enrollment date in school, etc).

 

[Ed_Flecko]

Is there something special about leaving California?

I have moved states multiple times. I considered my new date when my employer started collecting state income tax for the new place. I suppose if you don't have employer, or you have residual income in the state your leaving it could get dicey?

I have lived in California since 1985. Since we try to avoid "political" discussions, let me simply say that California is very, very different than what it once was. Having said that, I'm looking forward to leaving what was once a wonderful place to live...but (in my opinion) no longer is.

Ed

 

[KrisZ]

If you purchase another primary residence in another state, CA cannot tax you on the capital gains from selling your primary residence in CA. That's about it, everything else just file as normal and I used my closing date in TX as proof of when I moved out.
If you're planning to rent, you will likely get taxed.

 

[zzyzzx]

I'm sure that there is a YouTube video on this. Also, if I do move to a no state income tax state I'm not going to sell any assets (I.E.- trigger a capital gains situation) until the following calendar year, just to be extra paranoid.

 

[ArrestMeRedZ]

This is my understanding as well. I'm just not sure what type of "proof" would be acceptable to the Franchise Tax Board Brownshirts..



Ed

Be careful. Comparing the California Franchise Tax Board to the German party in power during WWII might get you sued by said party for slander.

 

[Vil_Riker]

The complexity of state move depends on how complex your income streams are.

But... you will need to file part-year resident taxes in both states. You should be able to delineate income earned in CA versus the new state. If your income streams are W-2 then it's quite easy. If you have dividends/interest/royalties and such, have a watershed moment for the before/after.

It's not very difficult, you just need to keep track of the date.

 

[funflyer]

We bugged out of Cali and moved to Az back in 2014. We use Turbotax and I don't recall anything difficult about filing for either state.