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Do I have to pay California taxes since I'm now a resident of Nevada?
State tax liability is based on both - residency and source of income.When you are a resident of a specific state - you are subject to income tax on all your worldwide income regardless of its source.
But if you are a nonresident of that state - you are taxed ONLY on income from that state sources.
Thus - if you are a nonresident in California - you are subject to California state income tax ONLY on income from sources within California.
If your workplace is in California - wages or other compensation you receive for these services are from California sources and are subject to California state income tax regardless of your residency.
But other income you might have - for instance - interest in the bank, pension, investment income, unemployment benefits, etc - would not be taxable in California as you are a nonresident there.
The difference is in determination of the state of residency - that is for military personal - the state of record.
Your state of legal residency (SLR) is your “Home of Record,” unless you changed it to another state.
As a military person - according to the federal law - you are considered a resident of the state from which you entered the military. As you are not a military person - general law stated above will apply.
According to the federal law - the compensation for military service is not considered to be from sources within the state where a member is stationed if that state is not the member’s domicile.
That is a federal law and covers only military personal.
If you are working and your workplace in California - your wages are subject to that state income tax - that compensation is considered from CA sources.
Sorry if you expected differently.
VA employees are not covered by that federal Soldiers’ and Sailors’ Civil Relief Act (50 U.S.C. App. Section 574) of 1940.
As nonresident - you are taxed ONLY on income from sources within that state,.If your employer agrees to change your workplace to NE - that compensation is not subject to CA income tax.If you work in different states - for instance in CA and NE as in your situation - your employer is required to keep track of your wages paid in each state - and report correspondingly on W2.
Otherwise - you are correct - wages for services you provide in Vegas are NOT subject to CA income tax - to that is a matter to report your compensation correctly.
The property is located in California - correct?So your workplace IS in California. Therefore your wages are from California sources.
You state that federal property located in California is not regulated by California law? That is not true statement.If you were laid off and apply for unemployment benefits - where would you apply? In California?What state law regulates your employment? California Labor law.If someone steals your wallet while you at work - who will investigate the incident? Local police.If someone hits your car on the parking lot at the FEDERAL property - who will prepare the report? Local police.How your FEDERAL employer reports your wages? What do you see on W2 form box 15? - I bet - it is reported as from California sources.No need to convince me - I am already on your side.If you think that your employer reports incorectly - you may file a complain.But so far - I feel that your position will not be accepted.
I do not mean specifically you - but any your co-worker.
You would not be able to file for unemployment benefits in Nevada because your employer did not pay unemployment taxes to Nevada. They pay to California. Why? - because the workplace is in California regardless of your residency.
So the only place you may apply - is California.
The federal employee reports earning based on the home of record for military personal only.
For civil employees - reporting is based on both - place of employment and residency.
If you think that your place of employment is NOT in California and you are NOT a resident of that state - contact your employee and ask to correct W2 form box 15.
That all you need.