Accepted Answer

Hello madmax,

State income taxes are imposed in two situations:

1. The state where you are a resident and
2. Any state where you physically work and have income

If you move to NV, you will have no resident tax there, because NV does not impose a state income tax. However, you would still be liable for tax in the state of CA if you physically worked in side of that state's borders.

If you work as a consultant for companies in CA, and all of that work is done from your home or office which is located in NV, then you will owe no CA state tax, even though the consulting work you do is for CA firms. On the other hand, if you actually physically go to the state of CA and work inside the offices of these companies, then you will be liable for paying CA state tax on that income. Occasional visits to the client's office would not constitute working within the state borders, as long as the majority of the work was actually performed from your home or your office in NV.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you madmax


Edited by Merlo on 10/17/2009 at 10:29 PM

Expert:	Merlo
Pos. Feedback:	99.8 %
Accepts:
Answered:	10/17/2009

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25+ years tax consulting. Specializing in returns for US citizens living abroad