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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15717
Experience:  15years with H & R Block. Divisional leader, Instructor
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I live in California... does CA tax pensions even if I move

Resolved Question:

I live in California... does CA tax pensions even if I move to Hawaii and/or Nevada.
Is there a time limit that I have to move from the state to avoid pension taxes ?
Thank you
Submitted: 7 years ago.
Category: Tax
Expert:  Robin D. replied 7 years ago.


Thank you for using Just Answer.

California does not impose tax on retirement income received by a nonresident after 12/31/95 . For this purpose, retirement income means any income from any of the following: A qualified plan described in IRC Section 401 . A qualified annuity plan described in IRC Section 403(a) . A tax-sheltered annuity described in IRC Section 403(b) . A governmental plan described in IRC Section 414(d) . A deferred compensation plan maintained by a state or local government or an exempt organization described in IRC Section 457 . An IRA described in IRC Section 7701(a)(37), including Roth IRA and SIMPLE . A simplified employee pension described in IRC Section 408(k) . A trust described in IRC Section 501(c)(18) . • A military pension, even if the military service was performed in California . A private deferred compensation plan program or arrangement described in IRC Section 3121(v)(2)(C) only if the income is either of the following: 1 . Part of a series of substantially equal periodic payments (not less frequently than annually) made over the life or life expectancy of the participant or those of the participant and the designated beneficiary or a period of not less than 10 years . 2 . A payment received after termination of employment under a plan program or arrangement maintained solely to provide retirement benefits for employees in excess of the limitations on contributions or benefits imposed by the IRC .

Any retirement or retainer pay received by a member or former member of a uniform service computed under Chapter 71 of Title 10, United States Code .


So if your pension falls under any of the above you will not need to file a California return for the nonresident time. California law is that a taxpayer who spends more than 9 months of a taxable year in California will be presumed to be a California resident.


I sincerely XXXXX XXXXX information is helpful,

Customer: replied 7 years ago.
Thank you for answer. Maybe I should have been more specific:
The scenario is as follows: I live in California and retire on 01 Sep 2014.
I move then to Hawaii and start retirement. Does CA tax my retirement
income earned while working in CA ?
Thanks again and sorry for the confusion.
Expert:  Robin D. replied 7 years ago.
No, if you move out of the state CA will not tax your pension.
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