My employer recently had a "reduction-in-force" and I volunteered to be on the list.
My accrued PTO and the severance package ("final paycheck") will be paid in Jan 2017, which is a good thing since my tax bracket will be lower. But I am also wondering about the state tax consequences, considering that I plan to move from CA to GA around June 2017 (i.e. will be part-time resident in CA for 2017).
1. Would I pay GA income taxes on the final paycheck? My guess is I should not be paying income taxes twice.
2. If I sell stocks with capital gains, how would the state CG tax be determined? Is it determined by the location where I am at the time of sale? E.g. if I sold the stocks in Jan 2017, I pay CA CG tax, but if I sell in Dec 2017, I pay GA CG tax? In other words, because the tax rate is lower in GA than CA, would I pay less tax if I defer any stock sale until I move to GA?
Thanks for your comments!
My accrued PTO and the severance package ("final paycheck") will be paid in Jan 2017, which is a good thing since my tax bracket will be lower. But I am also wondering about the state tax consequences, considering that I plan to move from CA to GA around June 2017 (i.e. will be part-time resident in CA for 2017).
1. Would I pay GA income taxes on the final paycheck? My guess is I should not be paying income taxes twice.
2. If I sell stocks with capital gains, how would the state CG tax be determined? Is it determined by the location where I am at the time of sale? E.g. if I sold the stocks in Jan 2017, I pay CA CG tax, but if I sell in Dec 2017, I pay GA CG tax? In other words, because the tax rate is lower in GA than CA, would I pay less tax if I defer any stock sale until I move to GA?
Thanks for your comments!