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.

Join Us In Congratulating Our Five New Partners

September 19, 2024

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We’re thrilled to announce that we’ve recently promoted five of our Tax Planning & Compliance directors to partner. We’d like to publicly congratulate Tes Baradas, Linda Chou, Michael Rogers, Eric So, and Kenneth Woerner on becoming partners at Lucas Horsfall!

Our new partners’ promotion is a testament not only to their hard work and professional excellence, but also to the way they embody the values that form the cornerstone of Lucas Horsfall’s culture. Their commitment to constant development and improvement, team-first attitude, and proactive approach to client service sets a shining example of what we all strive for. We’re proud to call each of them partners.

Lucas Horsfall has always placed a strong emphasis on developing and promoting from within. From day one, we invest tremendous attention and resources into supporting our associates in advancing their careers. As a consequence, our firm has very low turnover. This allows us to maintain excellent continuity of service and a strong company culture, to the great benefit of both our employees and our clients.

Please join us in congratulating our new partners!

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