Quick Summary of our tax situation:

- My wife & I both lived in NY from Jan-Apr 2007 .
- I moved to TX in May 07
- My wife moved to CA in May 07 to start a new job.

My question is only regarding CA state taxes. I'd assumed that we'd only need to pay CA state taxes on my wife's CA-sourced income from 05/2007 onwards as a part-year resident, since I had no CA-source income.
However, I've read that since TX is a community property state, half of what I earned belongs to her. So we'd need to pay CA state taxes on all of my wife's CA-sourced income PLUS 1/2 of the TX-sourced income I earned from May till the end of the year.

Is this correct ? Is there any way to establish that my wife's domicile is not in CA, or otherwise exclude the TX-sourced income from being subject to CA state taxes ?

Thanks !

Do not read too much into the community property tax issues.

Your need only pay CA taxes on CA-sourced income.