Non/Part-Resident State Income Tax?

Question

DETAILS: I've lived in California all my life (approx. 21 yrs.) and have never paid taxes before. On 06/07/2006 I moved to Montana and took up a job(s) and worked between 08/08/2006 and 12/01/2006 (approx.). In that time I made $3365 on a W-2 and had $74 deducted for stare income tax. I also made $510 in misc. income. I then proceed to move back to California on 12/14/2006.

QUESTION(S): Now, the question I have regarding this, which I haven't been able to find the answer to is this: Did I make enough to have to report it? Am I required to file state taxes in Montana? Because if I don't have to then I don't see the need as it isn't worth it going through the hassle to do so. If I do need to, what forms do I need to fill out and send in? This is driving me bonkers. I can't seem to find out what I need to do.

Answer 1

Is this your total income for 2006? If so, you are not required to file a federal tax return unless the $510 is self-employment income. You are not required to file a CA tax return. You are not required to file a MT tax return unless your federal gross income is over $3,630. Even if you're not required to file in MT, you would have to file if you wanted your $74 refunded.

http://www.mt.gov/revenue/formsandresources/06forms/2006_IIT_booklet.pdf

Answer 2

Real Easy.

You file a Part-Year "Montana" Resident Return indicating 6 months of residency and a Part Year "California" Resident Return Indicating 6 months
of residency there. The tax you pay in Montana become a credit for California.

The $ 510 you made in misc income is taxable to Montana, but not California.

This is a very easy calculation.

Answer 3

I believe that anything below $500 does not need to be filed. For the $510 misc, it will be declared separately on your return but is still technically part of your gross income. You absolutely should prepare a state return for MT, because that's the state you worked in. As for CA, if it were me, I would file for there too because the CA franchise tax board are very quick about catching up with people that do not file their taxes and there will be penalties. I know this is not the answer you wanted, but I work in the payroll divison of a huge company and see many garnishments and levies from the state of CA - even if you don't want to file for MT, just file for CA!!

Also - most states you can prepare, submit and pay any taxes online, which is much easier and user friendly than doing the paper copies!

Answer 4

If this is all the income you had you do not have to file a federal tax return UNLESS that $510.00 misc income was some type of self employment, then you might need to.
If it's not worth it to you to file to get the state tax withheld back, to get a refund of the $74. state tax paid, then you don't need to file anything. But keep your W-2 for future reference.