Disclaimer: I am aware that users here are not paid/licensed U.S. tax professionals and that I should only make decisions impacting my taxes with a licensed financial advisor.
Hi! I have a job in California but after the Pandemic hit I gave up my apartment (and California address) to be with family in North Carolina. My company knows about this arrangement and approved this temporary work relocation. I intend to move back to California next July when my company's offices are slated to re-open.
In my company's internal systems I changed my primary address to the NC address I am physically located at the moment. However, my company recently notified me that doing this might make me eligible to pay both CA and NC taxes.
If I just want to pay CA taxes and avoid double-taxation, what are my options here? Here what I see:
- This source claims that "North Carolina holds you to be a resident if you live within the state for 183 days or more during the tax year ... if you are a resident of another state, you may claim North Carolina taxes paid as a credit against that other state's taxes. This avoids double taxation of your income."
- (although I would still need to deal with the hassle of filing in two states -- ideally this just means 30 more minutes on TurboTax, but feel free to shout out if it's more complex than that ...)
- Use a CA-based friend's or family's address in my company's internal system, ensuring that CA taxes are paid but that double-taxation doesn't occur
What do people about the pro's and con's of these options? Curious to hear about what else I should be thinking about, or if there are existing threads on this topic