My client is a US Citizen and resident of Hong Kong, who traveled to CA just before everything shut down. There is no information yet about when they can return to HK, and there is concern that they will now be considered a CA resident in 2020 and be taxed on their world-wide income. Has CA offered any relief to their residency rules given the pandemic and related inability to travel?
I am not aware of any relief to the residency rules. If an individual comes to California for a vacation, to complete a transaction, or simply passing through it is considered transitory or temporary. Anyone spending more than 9 months in the state will presume to be considered a resident for tax purposes. There are numerous factors and guidelines to make the resident determination. Please check out FTB’s Publication 1031.