Relocated to state with no income tax but still working for employer in high-tax state

Thanks for the quick response! I submitted the address change to HR when I moved, but for some reason they're still withholding CA taxes. Should I be more insistent about fixing this? Also, do you know if I need to fill out any special forms with California to prove I'm no longer a resident there?

Yes, be more insistent with HR. They might need to update their payroll system or may not understand the tax implications of your move. Request a meeting specifically about this issue and explain that they need to stop CA withholding immediately. You don't typically need to file special forms with California to prove you're no longer a resident, but you should keep good documentation of your move (lease/mortgage in Texas, Texas driver's license, voter registration, etc.). When you file your part-year California return, you'll indicate the date you moved out of state. If you're concerned about California challenging your residency status (they can be aggressive about this), consider consulting with a tax professional familiar with California's residency rules.

Does this tool handle complicated situations? I'm about to move from Illinois to Tennessee but will be working in Illinois for 2 weeks every month. My employer is based in Minnesota. Would taxr.ai figure out all those different state requirements?

I'm skeptical about these tax tools. How is this different from TurboTax or H&R Block? Do they actually give advice or just fill in forms? And what happens if they make a mistake and you get audited?

It definitely handles complex multi-state situations! I had income from 3 different states last year plus a mid-year move, and it walked me through everything step by step. It's specifically designed for people with unusual or complex state tax situations. The main difference from TurboTax is that it focuses specifically on state residency and multi-state income issues rather than just general tax filing. It gives you actual strategies and documentation specific to your situation, not just form-filling. They provide audit support documentation that explains your filing position if you ever need to justify it to a state tax authority.

Wait, how does this even work? I thought it was impossible to get through to state tax departments without waiting for hours. Do they have some kind of special hotline?

This sounds like complete BS honestly. No way they can get you through faster than anyone else can. The IRS and state tax departments are notoriously understaffed and there's no "special line" for people. What are they doing, paying people to wait on hold for you?

It's actually a callback system - they stay on hold for you and call you when they get through to a human. It works with the regular public phone lines, not a special access number. They basically wait in the hold queue so you don't have to. Yes, that's essentially what they're doing - they have a system that waits on hold so you don't have to tie up your phone for hours. I was skeptical too until I tried it. It saved me from having to keep redialing and waiting on hold for 2+ hours.

That's really helpful. I hadn't thought about the distinction between domicile and residency. I've already gotten my Texas driver's license and registered my car here, but I still have my old bank account in California. Should I close that out completely? And what about retirement accounts through California institutions?

You don't necessarily need to close your California bank accounts - many people maintain accounts in multiple states. What matters is establishing that your life is centered in Texas now. Your retirement accounts can stay where they are - their location doesn't impact your residency status. The key factors tax authorities look at are where you physically spend your time (keep a log if you visit California), where your primary home is, community involvement, and where your family lives. Make sure your will, healthcare directives, and other legal documents are updated to Texas. If you own property in both states, the state you're leaving might try to claim you're still a resident, so having clear documentation of your Texas domicile is essential.

Yeah I used FreeTaxUSA last year for a move from Washington to Texas. It worked fine for me but both states don't have income tax so it was pretty simple. I think they do handle part-year state returns but not sure how good they are with the more complicated situations.