State Tax Filing required - 1099-INT

catmtax
catmtax Member Posts: 5 Newcomer
in Filing my taxes

FTB[9:55 AM]:Welcome to FTB Chat

My only source of income is interest from bank savings accounts, reporting on 1099-INT. I filed CA state tax last year 2023. I relocated and lived in TX in 2024 and had no earning income in both states other than the interest income from savings accounts. My question is: Do I need to file CA State tax because the 1099-INT reported under my CA address.

Best Answers

  • JMSSGV
    JMSSGV Member Posts: 243
    Answer ✓

    The address shown on your 1099-INT is only for mailing purposes and has no bearing on what state the income is taxed in.

  • catmtax
    catmtax Member Posts: 5 Newcomer
    Answer ✓

    great! Thank you

  • catmtax
    catmtax Member Posts: 5 Newcomer
    Answer ✓

    Thank you so much for your transparent and detailed advice. I am so grateful to you for all the information you advised. You are the best. Have a wonderful time and my deep appreciation to you and the team as always.

Answers

  • mgTaxes
    mgTaxes FreeTaxUSA Team Posts: 5

    If you lived in California in 2023 and then moved to Texas and became a resident of Texas in 2024, and your only income in 2024 is bank interest (reported on a 1099-INT), you likely do not need to file a California state tax return for 2024, as long as you had no California-source income during that year.

    California taxes residents on all income, and nonresidents only on income sourced from California. Interest income from savings accounts is generally not considered California-source income, even if the bank issuing the 1099-INT has a California address on file. The source of interest income is based on your state of residence, not the state where the bank is located or where the account was opened.

    The address listed on your 1099-INT does not determine whether you need to file a California return. What matters is whether you were a California resident during 2024 and whether any of your income came from California sources.

    The amount of time you spent in each state can make a difference. California residency is determined by where you have the closest ties, also known as your domicile. If you moved out of California in late 2023 or early 2024, you may be considered a part-year resident. In that case, you would only need to file a part-year California return if you had income from California sources while you were still a resident. If you lived all of 2024 in Texas and had no California-source income, you do not need to file a California return.

    You should update your address with the IRS, your banks, and any financial institutions to reflect your current state of residence. It’s also helpful to maintain records showing your move, such as lease agreements, utility bills, a Texas driver’s license, and voter registration, in case the Franchise Tax Board requests proof of residency change.

    https://www.ftb.ca.gov/file/personal/do-you-need-to-file.html
    https://www.ftb.ca.gov/file/personal/residency-status/part-year-and-nonresident.html
    https://www.ftb.ca.gov/forms/2024/2024-1031-publication.pdf

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