CA tax implications after moving?

[Barbastard]

I'm in the process of moving to Idaho and wanted to solicit input from others that have left the state recently to understand what "gotchas" the state might still have (or attempt to use) to pick my pocket of further tax dollars. Any input would be greatly appreciated. Ultimately, I'm trying to determine what if any money I should hold back to cover potential tax liabilities from CA and when it would be appropriate to stop having my employer withhold CA income taxes from my paycheck. And yes...I have already consulted my CPA on this but admittedly, he doesn't have a lot of experience with specifics on people leaving the state and my concerns. I am looking for further professional input, but in the meantime...figured I'd ask you folks.

Some details of my situation:

-I'm renting an apartment in Boise (rent paid for by me...reimbursed by my employer) but my wife and son are still in CA until June when school ends then they'll move out here.
-As of 1/31/23 I have an Idaho drivers license .
-I have opened bank accounts in Idaho but still have ones open in CA.
-Wife doesn't work so she is not paying any income tax to CA.
-In the process of looking/buying a house in Idaho. Should have escrow closed by end of May/early June at latest. Will be selling my house in CA in this same time frame.
-I quit my CA employer and received my last paychecks from them before the end of 2022. Started at my Idaho job after the first of this year.

Any reason to not have my employer stop taking out CA income tax now? Any other avenues for CA to attempt to get more taxes out of me?

[kwsr166]

Congrats and welcome! This what you need to review,

https://www.ftb.ca.gov/file/personal...tus/index.html Resident and Part Year Resident.

For myself, we did partial (CA) year until home was sold, and last child was out of HS, so as of May 31 ended CA and all ID.

[Dirtlaw]

I'm not an accountant, but I have read that the State intends to track down its fleeing residents and hit them with a tax liability. Like many things the state makes threats. Whether they succeed or not depends on the courts.

[nikonmike5]

It's all about residency and income. The discrepancy comes in when CA tries to figure out a way to say that you're still a resident of CA. Personally I think a lot of it comes down to whether you're a high earner or not. If you make serious dough, then CA is more likely to go after you. The other piece of course is whether you have CA income or not. So if your employer is in CA, or you have rental property in CA...etc.

I'd say the day you established residency was the day you should have stopped having CA taxes withheld from your paycheck. But it sounds like you're still having CA taxes withheld. If that's the case, then end it now.

Obviously everything has to match up. So tell the county registrar to remove you from the voter rolls. Get your vehicle registered in ID, notify CA DMV that you've moved...etc. Register to vote in ID. Each one of these is a data point showing you have left CA and have established residency somewhere else.

[Marauder2003]

Register to vote. Register your cars in Idaho. Fill out a CA DMV form that says your cars are no longer in CA. I forget the form number. If ID requires a CCW apply for it. If you have one for CA turn it in.

[beanz2]

As long as you have a home in CA and claim Homeowners' Exemption, you will likely have to file income taxes in CA, though you may claim credit for the income tax when filing income taxes in ID.

After you sell the house in CA, don't forget to notify the county assessor that you are no longer eligible for the exemption. You should notify the assessor by December 10th for the year. Here are a list of contacts by county: https://www.boe.ca.gov/proptaxes/countycontacts.htm

The best way is to consult a tax attorney in your state, especially if there is one who is familiar with CA tax implications.

[Spanky8601]

Make sure you utilize "return postage" signature to prove you sent correspondence to DMV/state agencies. Copies of paperwork. You might think about filing status "married filing separately" for 2023. Might hurt you Feds, but CA would not be able to come after no income spouse. Just thoughts, not intended for legal advise.

[Fear58]

An edge case, but if you ever worked for an employer who issued you stocks as part of your compensation, you'll be paying CA income tax on the stock lots you were awarded while in CA. E.g. if your employer gave you 1000 units in 2020 and you move to ID in 2023 and stocks vest over a period of 4 years, you'll be paying CA tax on that lot until 2024. Something I didn't really realize until moving. I get multiple W2's from my employer because of it.

[Senko]

It should help that you have a new employer in ID and that's where you reside. IMHO you should be paying income tax to ID. OTOH still owning the home in CA with your child in school muddies the water for them a bit.

We really didn't have any issues with CA coming after us for taxes or much else for that matter and we still have a couple of kids in college in CA with cars.

Be patient looking for a house in ID. There are a lot of indicators that prices will be coming down more. Many of the RE agents will say its a great time to buy right now and prices won't fall much further. I'm in the camp that they will.

[nitroxdiver]

[BAJ475]

Just before the plates on our PU expired I took it to Idaho and got Idaho plates. Thereafter, CA sent me a notice that I owed a penalty because I had not renewed on time. We were still moving belongings, so I dropped by the local CA DMV with their notice and the PU's CA plates. I was in a general question line and a DMV employees asked what I was there for? I handed her the notice and she said that I would have to pay the penalty. I told her that I was not there to pay anything, because the PU had Idaho plates and I was only there to give them back there plates, which I handed to her.

[1flhtk4me]

Just had our taxes done.
Moved here just 1 year ago so the taxes were Ca/Mt.
Nothing out of the ordinary.

As far as CA. DMV I notified them online before we moved.
Once we were here in Billings, DMV kept sending renewal notices.
It took a couple times of sending back the notices with "MOVED out of state" written on them.

[colossians323]

I work for a California corporation and my NV state income tax laughs at CA.
99% of the work I do, I do from NV, the 1% I do in CA they don't care (i am honest about my work in Cali).
The 10% raise from moving to an income tax free state is awesome pocket money.
They did come after us for a car that was registered 3 years in NV, so we had to fill out some paper work, but other than that, they get nothing.
WE own real estate in Cali but there is no getting out of paying California property tax.

Sounds like you are doing everything right OP, and you will have no worries.

[colossians323]

I'm not an accountant, but I have read that the State intends to track down its fleeing residents and hit them with a tax liability. Like many things the state makes threats. Whether they succeed or not depends on the courts.

It will get smacked down fast.

[colossians323]

It's all about residency and income. The discrepancy comes in when CA tries to figure out a way to say that you're still a resident of CA. Personally I think a lot of it comes down to whether you're a high earner or not. If you make serious dough, then CA is more likely to go after you. The other piece of course is whether you have CA income or not. So if your employer is in CA, or you have rental property in CA...etc.

I'd say the day you established residency was the day you should have stopped having CA taxes withheld from your paycheck. But it sounds like you're still having CA taxes withheld. If that's the case, then end it now.

Obviously everything has to match up. So tell the county registrar to remove you from the voter rolls. Get your vehicle registered in ID, notify CA DMV that you've moved...etc. Register to vote in ID. Each one of these is a data point showing you have left CA and have established residency somewhere else.

I am a high earner and get audited frequently. Ca gets only what is claimed in Cali.

Plenty of sage advice my friend.

We have a full time C'dA resident working in our company and he is in Cali for 2 and in ID for 3, he gets to partially pay Cali for the honor of working in the state.

His family, doctors, vehicles and residency is definitely ID