California Tax on CA Source Income and Days in CA - Spidell

California Tax on CA Source Income and Days in CA

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Message Board California Tax on CA Source Income and Days in CA

  • This topic has 1 reply, 2 voices, and was last updated 2 weeks ago by Sandy Weiner.
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    • #262712
      Jorge Perazzo
      Participant

      I have a NZ resident (US citizen ex-pat) who spent 104 days in CA for a gig in 2019 and collected it in 2020. Here is what I am telling the client – am I correct in my recital? I appreciate the feedback:

      Under California law, non-residents of California are presumed to be non-residents for tax purposes unless they’re in the state for 9 months or more.  So, your 104 days in California does not push you into any threshold that requires you to file a tax return and pay California taxes on income that is not sourced from California.

      Since you did not receive your money from your California gig until 2020, there is no California source income in 2019 to report and therefore no California tax return to file. you will have a CA tax return in 2020.

      In 2020, we would take the CA source income and the combine that with the 104 days you were present in California in 2019 to determine your liability to California.”

       

      Thanks in Adance.

       

      J Perazzo CPA

    • #262900
      Sandy Weiner
      Participant

      Jorge, from the information you provided you are correct that the client would not have a filing requirement in 2019 and would have to file a CA nonresident return in 2020 to report the CA-sourced income received in 2020.

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