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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28852
Experience:  Taxes, Immigration, Labor Relations
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My husband works remotely and can be paid in any of the ten

Customer Question

My husband works remotely and can be paid in any of the ten states in his territory. We have two daughters in CA going to school. Our son is going to WA for school. Can I buy a condo for my husband's primary residence in WA and keep CA as my primary residence? Then have my husband claim my son on his state return and I claim my daughters? We both make enough income to support our separate expenses.
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

The issue with working remotely is based on the physical location of the work place.

If your husband's employee provides a workplace in WA - that actually means - unemployment taxes are paid to WA and that would be income from WA sources.

.
Another issue with your husband residency - and that is not based on where his workplace is located.
If your husband actually a CA resident - he may permanently move out of CA and establish a residency elsewhere - but if will actually live in California - he will remain CA resident and all his worldwide income will be taxed for CA

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A California resident is any individual who meets any of the following:

  • Present in California for other than a temporary or transitory purpose.
  • Domiciled in California, but located outside California for a temporary or transitory purpose.
    • Domicile is defined for tax purposes as the place where you voluntarily establish yourself and family, not merely for a special or limited purpose, but with a present intention of making it your true, fixed, permanent home and principal establishment. It is the place where, whenever you are absent, you intend to return.

A nonresident is any individual who is not a California resident.

A part-year resident is any individual who is a California resident for part of the year and a nonresident for part of the year.

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Another issue that you want to file separate tax returns - correct?
That is possible - but if you file as MFS - married filing separate - generally that will result higher tax liability.

In order to file as HOH - and seems that is your intention - there is a requirements that you do not live with your spouse any time during last six months of the tax year.

As based on your information - you are living together - so that option is not available.