Ephesians3-14
Level 8

I have a client who has approx $20,000 in taxable moving expenses paid for by his employer. He took a job in California in late 2018 and most of his moving expenses were paid in early 2019. Turns out he got canned in the summer of 2019 (6 months in to the job!) and moved from CA back to Illinois. 

I know that you cannot deduct moving expenses on the Federal return, but California is one of a few states that still allow the moving expense deduction. 

My question is....since my client moved OUT OF California in 2019, can he still deduct those moving expenses on the CA 540 individual tax return. Or does CA only allow that moving deduction if you are moving into CA?

 

Good luck to all - the floodgates open in about 2 weeks!

0 Cheers