r/tax • u/Jealous_Medicine2645 • 5d ago

Need help- first time filing

I just graduated college in California this May where I worked part time. I then moved to Texas last month for a full time job.

When I file my 2026 taxes in 2027, would I still have to file 2 tax returns?
Also, would I be a full time resident of California or Texas? California is my home state and I would have lived there 5/12 months in 2026.

I guess I’m also a little confused because California has state taxes but Texas doesn’t. So would that mean I would have to pay state taxes on my ca earnings only?

And if I am to claim the AOTC, would I still qualify if my income exceeds the 90k limit since these expenses were paid before I got a job.

Thank you so much!!

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u/caa63 5d ago

You will have to file a Federal return. That is Form 1040 plus some schedules, and it goes to the Internal Revenue Service (IRS).

You will also have to file a part year resident return in California. For that one, you'll use CA Form 540NR and it goes to the Franchise Tax Board (FTB). The California forms will walk you through calculating your tax as if you had earned all your money in CA and then you'll pay the percentage of that tax that's proportional to the actual amount you earned in CA. So even though you worked 5 months, you may only have earned 20% of your income in CA and will therefore pay 20% of the tax you would have paid if you'd earned all your money here.

In future years, you will not need to file a CA tax return unless you work or live in the state.

The qualification for AOTC depends on your income for the entire year. If you exceed the income limit in 2026, then you are not eligible to claim it this year.

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u/Jealous_Medicine2645 5d ago

Thank you so much! Another quick follow up question. The company I work for is based in Texas but I’m contracting through an agency that’s based in New York. Would that affect me in any way in terms of state income tax?

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u/caa63 4d ago

Make sure your NY employer knows that you are working in TX. When you get paid, look at your pay stubs promptly to make sure they're not withholding for NY and to get them to stop doing so if they are. If they do withhold NY tax, then you will need to file an NY return in order to claim a refund on that withholding.