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Avoiding "Double Taxation" (Tax Law)

Mon, 02 Apr 2007 18:06:00 GMT

What is the name of your state? Oregon.
I recently moved from California to Oregon. I am required to take mandatory distributions from my SEP IRA beginning this year, 2007. Is there any way to avoid having to pay taxes on the distributions to both states? Any help will be greatly appreciated. ~Terry

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  • Tue, 03 Apr 2007 07:23:00 GMT(1)
  • Quote:

    Originally Posted by Terry Donaldson

    What is the name of your state? Oregon.
    I recently moved from California to Oregon. I am required to take mandatory distributions from my SEP IRA beginning this year, 2007. Is there any way to avoid having to pay taxes on the distributions to both states? Any help will be greatly appreciated. ~Terry

    Yes. You are going to be filing part year returns for each states. Those can be tricky and I recommend using a tax pro to handle your return this year. Make sure its someone who is exerienced in handling part year returns.
  • Tue, 03 Apr 2007 10:32:00 GMT(2)
  • Oregon:
    efflandt & LdiJ, thank you for your reponses; they are helpful.
    ~Terry
  • Mon, 02 Apr 2007 20:44:00 GMT(3)
  • You may have to pay tax to both states the year you move, but not double tax. Income and any deductions should be pro-rated based on the time in each state. See how both states handle part year residents.
    The following year, your distributions should only be taxed where you live. Although, if you still have real estate in California that you sell later, California will tax that. But you should get credit for that against any tax you would owe for the sale in your home state.
  • Fri, 06 Apr 2007 21:56:00 GMT(4)
  • Quote:

    Originally Posted by mil_90000

    Hello,
    I have a question regarding double-taxation..
    I moved to CA from NC in March 06. I read that if i am residing in CA for more than
    9 months, i need to file as taxes as full-year resident of CA, v/s part-year.
    Pls correct me if i am wrong.
    For NC, i need to file as part-year resident.
    Since i am filing as a full-year resident of CA, the tax will be on total income, including from NC.
    As far as the tax credit goes,
    1. I need to claim tax-credit from CA?
    2. How do i calculate the amount of tax-credit? I read some information online and
    i am confused whether i am entitled to tax-credit as per CA laws..I am using TaxAct
    and it shows me $0.
    Any inputs appreciated..
    Thanks,


    The best advice I can give you is to let a tax pro handle your taxes this year....which is the same advice that I would give anyone who wasn't a full year resident of a particular state. Its honestly worth it.
  • Fri, 06 Apr 2007 19:35:00 GMT(5)
  • Hello,
    I have a question regarding double-taxation..
    I moved to CA from NC in March 06. I read that if i am residing in CA for more than
    9 months, i need to file as taxes as full-year resident of CA, v/s part-year.
    Pls correct me if i am wrong.
    For NC, i need to file as part-year resident.
    Since i am filing as a full-year resident of CA, the tax will be on total income, including from NC.
    As far as the tax credit goes,
    1. I need to claim tax-credit from CA?
    2. How do i calculate the amount of tax-credit? I read some information online and
    i am confused whether i am entitled to tax-credit as per CA laws..I am using TaxAct
    and it shows me $0.
    Any inputs appreciated..
    Thanks,
  • Leave a Comment Now.

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