Living in NJ remote work in CA pay tax in both states?

5 Replies

Hello,

My employer is in CA and I worked remotely from NJ in 2020 , I also own a multifamily in NJ and earned rental income in NJ. Do I owe taxes in both states even though I did not live in CA?

Thanks

Originally posted by @Kumar Gaurav :

Hello,

My employer is in CA and I worked remotely from NJ in 2020 , I also own a multifamily in NJ and earned rental income in NJ. Do I owe taxes in both states even though I did not live in CA?

Thanks

There will be credits for taxes paid to another state.  

Originally posted by @Kumar Gaurav :

Hello,

My employer is in CA and I worked remotely from NJ in 2020 , I also own a multifamily in NJ and earned rental income in NJ. Do I owe taxes in both states even though I did not live in CA?

Thanks

 What state were you a resident of? Residency is where you sleep and determined by number of nights typically, but is also established by mailing address and drivers license. Most states require you to transfer your drivers license and vehicle registration within 30 or 60 days of taking up residency in the state. NJ requires it in 60 days, although allows 120 days during a health emergency. If your employer considers you a resident of NJ, your payroll address should reflect that. If your payroll address and drivers license show California, you may have a difficult time not paying CA state income taxes. My point is makes sure your addresses for payroll, mail and motor vehicle match your physical location. If they don't match, it just appears as though you are temporarily visiting.

Originally posted by @Joe Splitrock:
Originally posted by @Kumar Gaurav:

Hello,

My employer is in CA and I worked remotely from NJ in 2020 , I also own a multifamily in NJ and earned rental income in NJ. Do I owe taxes in both states even though I did not live in CA?

Thanks

 What state were you a resident of? Residency is where you sleep and determined by number of nights typically, but is also established by mailing address and drivers license. Most states require you to transfer your drivers license and vehicle registration within 30 or 60 days of taking up residency in the state. NJ requires it in 60 days, although allows 120 days during a health emergency. If your employer considers you a resident of NJ, your payroll address should reflect that. If your payroll address and drivers license show California, you may have a difficult time not paying CA state income taxes. My point is makes sure your addresses for payroll, mail and motor vehicle match your physical location. If they don't match, it just appears as though you are temporarily visiting.

Also be aware that states that lost tax payers, such as CA, are going to extreme measures to make sure that people are paying taxes. If you want to be taxed in a different state, have proof you actually relocated.

 

@Joe Splitrock

My address on w2 and driver's license are both NJ. Over 12k tax was witheld in CA state tax , my CPA indicated I will be receiving little over 5k as tax refund from CA and I owe over 5k in NJ .Looks like I will end up paying over 7k as state tax in CA :-( as well

Originally posted by @Kumar Gaurav :

@Joe Splitrock

My address on w2 and driver's license are both NJ. Over 12k tax was witheld in CA state tax , my CPA indicated I will be receiving little over 5k as tax refund from CA and I owe over 5k in NJ .Looks like I will end up paying over 7k as state tax in CA :-( as well

 You have to love California. Even when you move out of the state, they keep taxing you, haha. Can you avoid that tax in 2021 since you will not have lived in the state at all?