Level 4

Question

Part-year CA filing requirements

Forum|Forum|7 months ago
December 4, 2025
4 replies
16 views

Client moving to CA in mid-December. Over 65, single, no dependents, only income Social Security, IRA and broker investment account. Total taxable income for Federal for 2025 estimated to be about $10,000. Hasn't received their December SS payment and probably won't until after they move. All IRA withdrawals have been made for 2025, so the only additional income I see for CA would be any investment income within their broker account.

What are the filing requirements for client for 2025 for CA? Any chance they don't have to file because they are below an income threshold?

Note gender-neutral pronouns used here but client is Single.

ProSeries Basic

Jim-from-Ohio

Intuit Community Champion

https://www.ftb.ca.gov/file/personal/residency-status/part-year-and-nonresident.html

J

JADinAZAuthor

Level 4

Thanks Jim - I started there with my googling and I couldn't find a straight answer. Maybe I missed it.

George4Tacks

Level 15

MY GENERAL RULE:

Most states want you file the state return, if you must file a federal return. I would rather be safe than sorry.

Answers are easy. Questions are hard!

BobKamman

Level 15

Moving from where? Your name suggests Arizona. Not that it matters, but there is a huge difference between how the two states tax part-year residents. Arizona says, "we don't care how much income you made before you got here." California says, "figure your tax on all of your income for the entire year, then if 10% of it came during your period of residence, pay us 10% of that total."

Are they sure they are moving mid-December? Domicile is physical presence and intent to stay. Shouldn't they wait until after the holidays to decide if they really want to make the move permanent?

J

JADinAZAuthor

Level 4

Bob - yes moving from AZ - and I don't have issues with that part since that's where I practice. It's the tiny piece of CA residence that I'm concerned about. Normally I don't do CA returns but I'd like to assist this client for one last year if possible. And yes - the moving truck and client leave AZ on 12/8 - a clear separation date between states. House sold in AZ and new residence rented in CA. Although your logic is reasonable, that's not an issue for this client. But of course I'm not preparing the return for at least another couple of months. But the calculation you refer to here is very helpful - I couldn't find anything like that in my research. That's something that will be easily estimated since they will only be in CA resident in 2025 for 3 weeks. 1 SS payment - apparently not taxable in CA but probably partially taxable on the Fed level, plus whatever small activity the broker statement spits out during those 3 weeks. AZ house proceeds will not be taxable on Fed because the profit will be way less than $250k.

I'm hoping to get enough information and backup to determine that client will not have to file a CA return for 2025 at all. Do you think I have to file simply to get to that percentage calculation? Client will definitely file for Fed and AZ.

abctax55

Level 15

For what it's worth... CA doesn't tax Social Security.

BUT, CA is rather aggressive (!) so even if there isn't a liability filing isn't a bad idea just to placate them.

HumanKind... Be Both

Just-Lisa-Now-

Intuit Community Champion

If CA sees that you have a mortgage or state licenses of some kind (nursing, hairdresser, security guard, etc) they expect to see a tax return from you or you'll get a letter...its just easier to file for CA, even if its not required to avoid any hassles down the road.

FWIW the chances of them having enough income the last 2 weeks of December to generate a filing requirement is probably slim, unless they sell stock or pull their RMD the last 2 weeks of the year or something like that., BUT if you're filing a federal return with a CA address on it, CA may send you a letter asking if you should have filed a return.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

J

JADinAZAuthor

Level 4

Thanks Lisa - none of those things apply to my client. Retired and living mostly on SS. There will be zero wages or compensation of any kind. No more IRA withdrawals for the rest of the year (so zero after the move to CA). One SS payment and any income the broker account throws off after the move (which won't be much). The AZ home sale may close after the move, but no Fed tax since the profit is (much) less than $250k.

Your last sentence is especially helpful though - it's always nice to avoid a "friendly letter" from CA if possible. Client will definitely use a CA address on their 2025 Fed and AZ returns. Something to consider.

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