[ddeemo]

Originally Posted by RationalExpectations

I thought "safe harbor provisions" means paying in a minimum of the prior year's income tax obligation. I don't think California's tax code says you are exempt from filing a non-resident or resident income tax return.

Perhaps California has a special exemption for the military & certain government employees/contractors under specific circumstances (under the assumption such a thing applies to you). I don't keep up on that stuff.

Nope - no special exemption if you are a CA resident, you are subject to CA taxes except for active duty permanently assigned outside of CA. Even then they will try.

As far as safe harbor - it requires spend no more than 45 days total in any year in CA or subject to tax on the entire amount - spending every other weekend in CA would violate safe harbor. Seems like easier to be a NV resident and xfer back if want after 3 years - then could spend as much time as want in CA for vacation.

[JonathanLB]

Originally Posted by Cold Warrior

I should add here that even non-residents of CA must pay tax on all CA income.

Yeah, exactly. Almost all of my income comes from CA so I have to file every year and pay taxes on that income. That’s why sadly living in NV doesn’t help me as much as it would some people, but I have some income from AZ that’s taxed at a lower rate, and I guess whatever money I earn here on, say, stocks or whatnot.

[longviewJoe]

Originally Posted by JonathanLB

Yeah, exactly. Almost all of my income comes from CA so I have to file every year and pay taxes on that income. That’s why sadly living in NV doesn’t help me as much as it would some people, but I have some income from AZ that’s taxed at a lower rate, and I guess whatever money I earn here on, say, stocks or whatnot.

Yup. I am in a very similar boat. Your tax person will definitely want to segregate your non-CA income to avoid the FTB. My understanding it's not a big deal. Definitely report it accurately as the FTB are monsters! I will admit I am sort of excited about this tax change myself for the time since I moved to Nevada.

[Cold Warrior]

An advantage of filling out a form CA 540NR is that it shows you what you would have paid if you had not left CA and you can calculate your savings.