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Visitor II

IRA inheritance but living in two states

I'm a resident of Michigan but I'm spending 5 months in CA working a seasonal job then going back to MI. I'm the recipient of a modest IRA inheritance and will take it as a lump sum. I'm not sure if this will be taxed CA state tax if I'm a nonresident. Does it matter when I receive the sum in relation to my temporary time in CA? Or will I be taxed in CA for it no matter what if it's received in the same tax year?
1 Comment
Catalyst V

IRA inheritance but living in two states

You're still a resident of Michigan, you're a non-resident of California.  Your Michigan resident return will tax you on ALL income, your non-resident CA return will only tax income you earned while in CA.  Your pension income will be taxed in your resident state.

 

Michigan should give credit for taxes paid to CA, so that you're not double taxed on that amount (sometimes the nonresident state gives the credit, but either way you wont be double taxed on the income you earned while in CA).