Level 7

Question

FILING STATUS

Forum|Forum|3 years ago
March 9, 2023
5 replies
31 views

Hi and thanks in advance.

My client lives with son all the year in CA and one spouse moved to Seattle middle of June 2022 for 4 years medical residency. What is the status of who is in Washington? And how about the rest of family in CA? Also who is in Seattle has 2 w-2s from CA and Seattle.

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taxes96786

Level 8

Have you read the 1040 instructions?

abctax55

Level 15

@taxes96786

Have you read the 1040 instructions?

Do you post this crap just to ??? ( I don't know- gather thumbs up some way?)

1040 instructions have NO INFO on state issues, and neither does Pub 17 by the way.

The OP is asking about CA & Washington.

HumanKind... Be Both

BobKamman

Level 15

@abctax55 With a couple of other recent posts involving HoH, my first thought was that was what was involved here, also. But answers off the top of the head, usually just result in dandruff. Don't let them get your dander up.

itonewbie

Level 15

Sounds to me CA remains the spouse's domicile and the spouse will, therefore, continue to be liable for CA tax during the 4 years of residency.

The spouse could possibly qualify for the safe harbor to be considered nonresident (so long as the days of presence in CA are carefully manage and the amount of intangible income doesn't cross the threshold) but there'll be another hurdle to overcome, which is over filing status because CA generally follows that of the federal return.

This will be a problem if your client has CA-source income, such as wages, that would be allocable to the spouse since the exception for using a different filing status mandates, inter alia, that the nonresident spouse must not have any CA-source income during the tax year.

---------------------------------------------------------------------------------Still an AllStar

HOPE2Author

Level 7

Thanks for your insight. The spouse who is in Washigton has 2 W-2s, one from CA the other from WA.

W-2 from WA does not have state part as you know and around $33000, the other one from CA is around $15000 when spouse was in CA ( from job site before moving WA, from JAN till July first) I considered residency of WA for her as non-resident, but on her w-2 in state part; CA pupped up and I can not remove it. Also, on CA return in spite of mentioning non-resident in work info, allocation income has not been appeared. So I am confused and need a help. I am challenging to find out for family status or each of spouses.

Thanks again for any help.

itonewbie

Level 15

You need to first determine the domicile of the spouse and your client because that will drive everything else.

On what basis do you consider the spouse to be a nonresident of WA? It is more likely that he falls within the statutory definition of tax resident (which doesn't go by day count). Even if he continues to be a CA domicile doesn't automatically mean that he will be nonresident of another state.

In terms of allocation on the return, going back to the points I raised in my initial response, you really need to first figure out the domicile status of both spouses, the residency positions, and the optimal filing status. We can go back to discussing the input and mechanics afterward.

---------------------------------------------------------------------------------Still an AllStar

Skylane

Intuit Community Champion

Not enough details and glad you’re not shouting… If both are legal CA residents (dr licenses, voting, tax home) then follow the w2s. CA resident and WA non res. Not really familiar with state rules on the left coast but that’s basically how it should work.

Or, if spouse in WA spouse establishes residency in WA, then, they could file MFJ federal, and each file their own respective state returns. You’d have to check each states rules for filing status.

If at first you don’t succeed…..find a workaround

BobKamman

Level 15

I would not assume that the doctor intends to return to California. I mean, how many people who have left California for Washington intend to come back?

I thought the question was whether the spouse in CA could file HOH. That's an interesting question.

Since both states are community property, CA still can probably tax at least half the WA income.

IRonMaN

Level 15

30 posts later and no closer to satisfaction. As Sonny and Cher used to sing - and the beat goes on, the beat goes on.

Slava Ukraini!

itonewbie

Level 15

@IRonMaN wrote:

30 posts later and no closer to satisfaction. As Sonny and Cher used to sing - and the beat goes on, the beat goes on.

I give up. The OP doesn't want to dance to the music. We can continue to play Sonny and Cher in loops like we're trapped in an elevator - I think I'll go mad. 🙄

---------------------------------------------------------------------------------Still an AllStar

HOPE2Author

Level 7

As I told , it is the very complicated and hard to find the answer even on FTB BOOKLET or whenever. Do not give up and help me to find the direction.

Thanks

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