CPA Answers Blog Readers' Tax Questions

I Will Teach You To Be Rich took over 100 reader tax questions and posted answers to the best ones from from David Bergstein, CPA.

I live in CA but worked over the summer in TX and was not taxed on income while there. I still claim residency in CA so I’m wondering if I need to pay taxes on the income earned while in TX… thanks.

Answer: The answer may not be one you want to hear but California determines whether you file a return or not based on your worldwide income and their instructions for the Form 540 resident return states that you should “Enter the total amount of your state wages from all states from each of your Forms (w-2)….” This is one of those cases where you do not receive a credit for taxes paid to another state because Texas has no personal income tax.

Check out the series and bone up your tax knowledge:

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— BEN POPKEN