Moving Out of California? Better Make it Permanent!

California taxes all residents who are not temporary or for a transitory purpose. Some believe that moving to another state and establishing residency may preclude an obligation to file and pay tax returns in California.  In recent state cases, buying a home in another state or obtaining another states driver’s license may not prevent the imposition of tax.

California state looks at the following criteria when evaluating taxpayer residency status:

• The state where the taxpayer claims the homeowner’s property tax exemption,
• The address the taxpayer uses on his tax returns,
• The state where the taxpayer registers his vehicles,
• The state where the taxpayer maintains a driver’s license,
• The state where the taxpayer maintains voter registration and the taxpayer’s voting participation history.
• The state where the taxpayer’s children attend school,
• The location of the taxpayer’s banking relationships,
• The state where the taxpayer maintains memberships in various organizations,
• The state where the taxpayer obtains professional services, such as doctors, dentists, accountants, and attorneys,
• The state where the taxpayer is employed,
• The state where the taxpayer maintains or owns business interests,
• The state where the taxpayer holds a professional license or licenses,
• The state where the taxpayer owns investment real property.
• The proportional values of real estate owned in different states,
• The state where the taxpayer’s spouse and children reside,
• The taxpayer’s telephone records, which would be where the calls originate.
• The number of days the taxpayer spends in California versus the number of days the taxpayer spends in other states,

California is one of the most heavily taxed states in the nation. We at G&S accountancy, can evaluate your tax filing obligation in this great state and make sure you pay the correct amount of tax whether you are a resident, part-year resident or a non-resident taxpayer.