First of all, I hope this is the correct place to post this. My wife and I currently live and own a home in California. We have purchased a second home (fixer upper) in Idaho and the long term plan is to to move and reside permanently in Idaho. We are both retired in California and draw state pensions. My question is:
If I establish permanent residency in Idaho now (residents get a large discount on their property taxes the first yar and the second year no property taxes at all are accessed) before the end of 2016, how does that affect my state tax filing in Idaho and California? I will not be working in Idaho, only drawing my California pension and working on home repairs. My wife will stay in the California home as long as her elderly parents are alive and then we will sell that home. Will my wife have to file an individual state return in the future and me filing an individal return in Idaho. Do we file joint or individual federal tax returns?
I apologize for the length of this and hope for help clearing up much confusion/concerns for me. My California vehicle will also be registered in Idaho.
Thank you for your help in this.