Avoid CA taxes during retirement

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Marseille07
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Joined: Fri Nov 06, 2020 12:41 pm

Re: Avoid CA taxes during retirement

Post by Marseille07 »

Wannaretireearly wrote: Mon May 23, 2022 9:43 pm Hmm. If your a part year resident, under 6 months, you still have to pay CA taxes? If so, that’s news to me…
California is a sticky state. All bets are off if you stay more than 45 days in California.

Your best bet is to become a resident of another state then visit California under 45 days. https://www.therealestatecpa.com/knowle ... -residency
Wannaretireearly
Posts: 4881
Joined: Wed Mar 31, 2010 4:39 pm

Re: Avoid CA taxes during retirement

Post by Wannaretireearly »

fareastwarriors wrote: Mon May 23, 2022 10:40 pm
Wannaretireearly wrote: Mon May 23, 2022 6:46 pm I paid a sum total of around $40k in CA taxes. While my kids are here I don’t have much choice. I am all ears once kids are done with school, and I don’t have to be here for more than 6 months a year.

Fwiw, there is no other place I would want to be in fall/winter. That’s only 3-4 months (non taxable!)
40k in CA income taxes means you have pretty high income. So congrats! :sharebeer
And thank you for contributing to our state.
Haha. You’re Welcome. I think ;)
“At some point you are trading time you will never get back for money you will never spend.“ | “How do you want to spend the best remaining year of your life?“
Wannaretireearly
Posts: 4881
Joined: Wed Mar 31, 2010 4:39 pm

Re: Avoid CA taxes during retirement

Post by Wannaretireearly »

Marseille07 wrote: Mon May 23, 2022 10:58 pm
Wannaretireearly wrote: Mon May 23, 2022 9:43 pm Hmm. If your a part year resident, under 6 months, you still have to pay CA taxes? If so, that’s news to me…
California is a sticky state. All bets are off if you stay more than 45 days in California.

Your best bet is to become a resident of another state then visit California under 45 days. https://www.therealestatecpa.com/knowle ... -residency
Wow . Got it. Thanks. Learn something new every day…
“At some point you are trading time you will never get back for money you will never spend.“ | “How do you want to spend the best remaining year of your life?“
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grabiner
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Location: Columbia, MD

Re: Avoid CA taxes during retirement

Post by grabiner »

Marseille07 wrote: Mon May 23, 2022 10:58 pm
Wannaretireearly wrote: Mon May 23, 2022 9:43 pm Hmm. If your a part year resident, under 6 months, you still have to pay CA taxes? If so, that’s news to me…
California is a sticky state. All bets are off if you stay more than 45 days in California.

Your best bet is to become a resident of another state then visit California under 45 days. https://www.therealestatecpa.com/knowle ... -residency
The 45-day rule is an unrelated issue. If you are overseas under an employment contract for at 546 days (a year and a half), you are not a CA resident for tax purposes; you may return to CA for less than 45 days without being taxed as a resident.

Part-year residency applies to taxpayers who change domicile. If you move from CA to another state on June 1, you pay CA tax on income earned through May 31 (or CA-sourced income earned later).

CA does not have the same strict 183-day rule for determining statutory residency as many other states. In many states, if you maintain a permanent home in the state and are present in the state for 183 days, you are taxed as a full-year resident even if your domicile is elsewhere. This affects snowbirds who might live half the year in NY and half in FL. But even if you are present in a state with a strict 183-day rule for less than 183 days, you have to prove to the state that you are no longer domiciled at the place where you still have a home.
Wiki David Grabiner
Wannaretireearly
Posts: 4881
Joined: Wed Mar 31, 2010 4:39 pm

Re: Avoid CA taxes during retirement

Post by Wannaretireearly »

grabiner wrote: Tue May 24, 2022 6:14 pm
Marseille07 wrote: Mon May 23, 2022 10:58 pm
Wannaretireearly wrote: Mon May 23, 2022 9:43 pm Hmm. If your a part year resident, under 6 months, you still have to pay CA taxes? If so, that’s news to me…
California is a sticky state. All bets are off if you stay more than 45 days in California.

Your best bet is to become a resident of another state then visit California under 45 days. https://www.therealestatecpa.com/knowle ... -residency
The 45-day rule is an unrelated issue. If you are overseas under an employment contract for at 546 days (a year and a half), you are not a CA resident for tax purposes; you may return to CA for less than 45 days without being taxed as a resident.

Part-year residency applies to taxpayers who change domicile. If you move from CA to another state on June 1, you pay CA tax on income earned through May 31 (or CA-sourced income earned later).

CA does not have the same strict 183-day rule for determining statutory residency as many other states. In many states, if you maintain a permanent home in the state and are present in the state for 183 days, you are taxed as a full-year resident even if your domicile is elsewhere. This affects snowbirds who might live half the year in NY and half in FL. But even if you are present in a state with a strict 183-day rule for less than 183 days, you have to prove to the state that you are no longer domiciled at the place where you still have a home.
Thanks for the clear and detailed explanation!
“At some point you are trading time you will never get back for money you will never spend.“ | “How do you want to spend the best remaining year of your life?“
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