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This is a question about CA tax. We've been living in CA for a few years and want to move to NV for a year or so. We would give up our residence here and move to NV. First, if we moved from CA to NV in October of this year, would CA still tax income earned in December this year? I'm not sure if there is a rule that allows CA to tax you for the entire year if you lived the majority of the year in CA. Second, if we live in NV for a year or more and then decide to move back to CA, would CA consider us under temporary assignment in NV and want taxes from the year we lived in NV? Thanks.
Country/State/Province of question: CA Already Tried: Some online research.
You are taxed based on your residency or based on the source of your income.
If you are ea resident of California - all your income is taxable on the state level regardless of its source.
If you change your residency and move out of California - only income from California sources would be taxable.
If you change your residency in the middle of the year - you will be considered part year resident - for that part of the year that you was a resident all your income is taxable - and for that part you was non-resident - only income from California sources is taxable.
If you move to NV under temporary assignment - that usually doesn't change your residency - you will be considered a resident of California. To change your residency - you need to move permanently and establish a sufficient ties with NV - such as get a driver's license, bank account, etc.
Let me know if you need any help.
Tax Advisor
Taxes, Immigration, Labor Relations
Excellent, that's just what I needed to know. CA is an odd state so I wasn't sure about how our income would be treated after moving out of state. Thanks.
You might find helpful this FTB publication - http://www.ftb.ca.gov/forms/misc/1100.pdf
It might look complicated - but provides answers on many questions you might have at the tax time.