I have a client who is considering buying a property in California and keeping his existing home in Illinois. He works in Illinois. His time will be split 55% Il and 45% CA. His wife will be in CA probably 90% of her time not working.

To which state will my male client pay his taxes? I advised Illinois - esp as only 3% as opposed to CA 9.3% but then suddenly became very doubtful and am looking for certainty...Of course I told him to check with his CPA!

MukatA

If you are present in a state, then any income earned during this period, must be reported to the state.

To your resident state, you must report your worldwide income for the year. Read: Your U.S. Tax Return: Working or Living in Two or More states

RealtorJennifer

Thank you very much. The website you sent link to is awesome.

AtlantaTaxExpert

Given that the preponderance of the couple's time is spent in California, I believe that California will be the resident state tax return and Illinois will be part-year resident the first year, then non-resident for the following years.