Hi,

I lived and worked in New Jersey till Aug 2010. I moved to California and started working here from Sep 2010. For California taxation purpose, am I considered a resident or non-resident or part-time resident?

If considered resident, should I calculate tax only based on income earned in California from Sept to December? Or, should I include my New Jersey income too?

Please help.

Part year resident from sep 2010 to Dec 31, 2010. Only the income earned while in CA is taxable in CA.

To be clear, you do indeed pay taxes to CA only on income earned while a CA resident. However, you do have to report all income - including your NJ income - when you complete the part-year resident return for CA. As you complete the form you will see that they make you first calculate a total tax as if ALL your income is being taxed by CA, but then as you get near the end of the form you multiply that hypothetical number by a percentage representing the portion of your income that you made while living or working in CA.

Bu the way, the same principal applies to your NJ tx return. File the part-year resident return with NJ, and again you will have to report all income for the year, but will be taxed by NJ only on the income you made while living or working in NJ.

Thanks a lot ebaines and MukatA for the response.