If I work in California but live in Nevada.. do I have to pay state income tax?
A: An employee owes income tax in the jurisdiction where the work is performed, unless the employee's work is transitory. Example:
1. Smith works for one month, 40 hours per week, for ABC, Inc., located in California. Smith is liable for California income tax.
2. Same facts as above, but ABC, Inc. is located in Nevada, and Smith works for only one day. Smith is liable for Nevada taxes.
There is no bright line on how much time is required to trigger liability for taxes in California. The issue is whether or not the employee's place of employment is reasonably changed to a California location, as opposed to the employee working temporarily within California for the Nevada employer.
Do I get a refund if I file as a nonresident in California?
A: You will get a credit on your Nevada tax return for any taxes paid to California. There will be no "double tax."
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