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Tax Law (Questions About Taxes)/California tax for overseas worker

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Question
Sir,

I am a federal employee working overseas since May 2012.  When I moved, I had to certify on federal documents that I am discontinuing my residence in California and have established a new one in a country abroad.  As such, there was no tax witholding from the state of California, since I have left.  How do I go about avoiding paying taxes in California when I do not receive any locality or other income from california?

I have changed all my addresses, etc...I do not intend to move back to California even after this two year assignment ends, as I am planning to go to Japan.

Answer
John,

CA has a 546 day rule meaning that if you worked out of state for 546 consecutive days, you are not considered a CA resident.

If you have income from CA from Jan-May 2012, you would have to file a CA return.

Since you left CA in May 2012 and do not plan to return, you are not considered a CA resident (if you do indeed wind up meeting the 546 day rule). Not that you cannot return to CA at all during this time (except for temporary stays in CA not exceeding 45 days).

See CA FTB PUB 1031 here: https://www.ftb.ca.gov/forms/2011/11_1031.pdf

Take care,  

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Bruce W. Tyler, EA

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I can answer questions with regard to the following: Preparation/Tax Law regarding Individual Income Tax (IRS and California), Audit Representation/IRS Procedures of personal and corporate income tax including appeals, IRS Collection procedures for individuals, partnerships and corporations, Offers-in-Compromise, Installment Payment Plans, Penalty Abatement,Income from Cancellation of Debt. Heavy experience with Public Safety (i.e. Firefighters, Police Officers, Correctional Officers, etc) as well as medical industry.

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