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radhika79 · Apr 27, 2009, 07:13 PM

Hi,

I switched employers (both in NJ) in March 2008. I moved from KS to CA for the new job (in march). The W-2 from the first employer (while working in KS) W-2 is fine. But the CA W-2 has NJ address on it. All my pay stubs have the NJ address on them as well.

I filed CA tax and they debited the amount from my acct. NJ has sent me a notice asking to submit all W2's for me to be able to get the refund.

I am worried about the following and seeking help on how to deal with the situation:

1. My address on the W2 is NJ address
2. I did not update my address with USPS until June since I had a friend in KS and used her address to receive mails
3. I have not obtained a CA drivers license but bought a car in CA in August.

I am worried about convincing NJ that I in fact did move to CA and live here. (rather that I did not earn income in NJ)

What supporting documentation will help in may case? - Employer letter stating that the address on W2 is wrong?

I am really disappointed that I paid taxes to a higher state tax but am having trouble getting my refund from NJ.

Look forward to hearing from the experts.

Thanks in advance

MukatA · Apr 27, 2009, 11:10 PM

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

If you live and work is a state but your employer is from another state, then your income is only subject to the state where you live and work.

If you were not present in NJ, then income during that period is not taxable in NJ. Get a letter from your employer that you worked from CA.

Read: Your U.S. Tax Return: Working or Living in Two or More states

ebaines · Apr 28, 2009, 05:38 AM

First, you should ask your employer to update your record of home address to reflect your CA home - if they're not withholding CA tax then you'll have a huge CA tax bill due next April. Second, you can use documentation such as your lease agreement and utility bills to prove residency in CA. I do recommend that you switch to a CA license, not so much to prove residency for tax purposes but because that's what you're supposed to do within 30 -60 days of moving into a new state. As for your NJ return - did you file NJ1040-NR (non resident return) showing $0 NJ-based income to justify getting a full refund? Also, what did you do in previous years, when you were living and working in KS - you didn't pay NJ income tax, did you?

AtlantaTaxExpert · Apr 28, 2009, 07:08 AM

I suspect that you did have NJ taxes withheld, in which case you need to do what ebaines says and file a Form NJ1040-NR to get a full refund.

NJ has no legal standing to tax your income, but you need to prove that to them. A memo from your employer stating that you neither lived nor worked in NJ should suffice.