Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.
If the taxpayer does not live in California they are not required to pay taxes to the state of California
Even though the source income he receives is from a Company that incorporates in California?
Correct. He does not have a business in california and he does not live there, therefore he owes no tax to California
Are there any source code that I could refer to?
I do not have code reference
What about if he used to live in California, but just because he got this work-from-home job, so he left California and worked in the foreign country since the Company allows him to do so..
So he was a California resident before leaving the country?
Then, he's still a California resident and owes Caliornia tax
but how about he left CA for a long time?
Still considered a California resident
I heard there is a rule..which is if he left the state more than 564 days because of employment contract
he is not considered CA resident
Let me check
You can find the information, here: https://www.ftb.ca.gov/forms/2010/10_1031.pdf
Could you please give me some advises? I have read those rules
but I am not sure about how to apply in this particular case
The rule would be in this document
We don't provide advice, rather general information.
Could you please show me which page that describes about it?
I don't know.
I would say he's not a resident.
if he left the state more than 564 days4
Ooops that didn't copy well
A resident is described as someone who is in California for something other than a transitory purpose
or who is outside of California, but only for a temporary period of time.
I would say if he's been out of the country that long he is no longer a California resident
Look at page 3, example 2
let me check..
it discusses someone who works for a German company and is stationed in Germany for two years. Even though they came to California for a 3 week vacation, they are still considered not a CA resident
thanks for your help
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so he does not need to report his company's income in CA return?
Correct if he is not a CA resident
Got that, thanks!