How long do I need to be out of California to be considered a non-resident for tax purposes?

There’s no specific time requirement. It’s based on a facts and circumstances test. However, spending less than 6 months in California and establishing strong ties to your new state can help support your non-resident status.

Can I keep a vacation home in California without affecting my non-resident status?

You can, but it may complicate your situation. The more ties you maintain with California, including property ownership, the harder it may be to prove non-resident status. It’s important to limit your time in California and ensure your primary residence is clearly established elsewhere.

How does California tax retirement income for non-residents?

Generally, California doesn’t tax retirement income (like pensions and 401(k) distributions) of non-residents, even if it was earned while working in California. However, other types of deferred compensation may be taxable.

What is the “183-day rule” and how does it apply to California residency?

The “183-day rule” is a common misconception. California doesn’t have a strict 183-day test for residency. While spending more than 183 days in California can be a factor, residency is determined by a variety of factors, not just time spent in the state.

How does California’s Franchise Tax Board (FTB) determine if someone is still a resident?

The FTB looks at various factors, including the location of your primary residence, where you’re employed, where your family lives, where you’re registered to vote, and where you have bank accounts and other financial ties.

Can I work remotely for a California-based company and avoid California income tax?

If you’re a non-resident working remotely for a California company, your income generally isn’t subject to California tax. However, any work performed while physically in California would be taxable by the state.

Honoring Our Leaders of Influence: Linda Chou and Tes Baradas

April 1, 2025

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We’re beyond excited to announce that two of our incredible team members, Linda Chou and Tes Baradas, have been featured in the LA Business Journal’s Leaders of Influence: Minority CPAs issue! This prestigious recognition celebrates their exceptional technical skills, unwavering leadership, and their powerful impact on our clients and the accounting community at large.

Linda and Tes are prime examples of why Lucas Horsfall is the go-to partner for businesses and individuals. They’re not just talented CPAs — they’re strategic powerhouses who help clients tackle complex financial challenges with clarity and confidence. Their expert guidance and customized solutions are absolutely invaluable to the people they work with.

But their contributions go far beyond just client work. Both Linda and Tes are deeply passionate about mentoring the next generation of accounting professionals. Through their leadership and mentorship, they’re opening doors and paving the way for future talent, ensuring that the industry thrives with diverse voices and perspectives.

At Lucas Horsfall, diversity is at the heart of everything we do. It makes our team stronger, sharper, and more innovative — and we’re incredibly proud to see Linda and Tes recognized for their outstanding contributions to the field.

Please join us in congratulating Linda and Tes for this well-deserved honor! Their commitment, integrity, and leadership inspire us every day, and we couldn’t be more proud to have them on our team.

You can access the LA Business Journal Leaders of Influence: Minority CPAs issue here.

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