All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

Reply
Tax Pro
Posts: 5,780
Registered: ‎02-23-2016

Re: Bought a house at end of Dec 2015 - how does it affect taxes?

Hi Vegasbound1,

 

 

I see what you're getting at now.  So what will happen is you'll pay tax to California as a non-resident since your home will be in Nevada.  That will start on the first day you own the house in Nevada.  That's going to be your primary residence since it's going to be home to you and your family and since your family will be there all the time and you'll be there when you're not at work.  Work outside of your area counts as a temporary absence just like going to school does for a college student.  So for the year that you move you'll have a part-year resident / part-year non-resident for California and then if there's another year after that during which you're still working then you'll have a non-resident California return for that year.  The change to a non-resident return is the only big difference you should see for the state returns.

 

Nevada does not have an income tax, so you'll still only have the one state tax return for California.  Also, retirement income is generally taxable at the state level only in the state in which you reside, so if you receive social security or pension income after you retire then that will be tax-free on the state level with you being a Nevada resident.

 

Do you work at different temporary job sites throughout the year in California?  If so then that gives you a way around the commuting rule for the mileage deduction.  If your work lasts for less than 1 year at each job site then it's considered a temporary job and you can deduct miles for getting there and back on Schedule A, as well as tolls & parking fees that you incur on work trips.  Note that any travel cost that you are reimbursed for cannot be deducted.