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    thound's Avatar
    thound Posts: 7, Reputation: 1
    New Member
     
    #1

    Mar 13, 2008, 02:46 PM
    Spouses working in CA and TX, community income applies for state tax ?
    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 !
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #2

    May 1, 2008, 10:12 AM
    Do not read too much into the community property tax issues.

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

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