Tracking US States & Canadian Provinces
California Tax Residency Requirements
Track your days in California and determine your tax residency status under the 183-day rule
Overview
California residency requirements
Understanding California tax residency rules
California tax residency rules are complex and go beyond simple day counting. The state primarily uses a comprehensive 'facts and circumstances' test to determine residency status for tax purposes. This test evaluates various factors, including the location of your primary residence, voter registration, professional licenses, and overall connections to the state. While many states use a straightforward 183-day rule, California's approach is more nuanced. The Franchise Tax Board (FTB) considers these factors holistically to assess whether you're a California resident for tax purposes.
The 'Nine-Month Presumption' and the 183-day rule California
Although California doesn't strictly adhere to a 183-day rule, it does employ a 'nine-month presumption' rule. If you spend more than nine months (approximately 270 days) in California during a tax year, you're presumed to be a resident. This is more lenient than the 183-day rule California doesn't officially use, but it's still crucial to track your days carefully. The 183-day threshold, while not definitive in California, can still be a useful benchmark for taxpayers to monitor their time spent in the state. Remember, even if you're under these thresholds, other factors may still classify you as a resident.
Part-Year Residency and the 'Safe Harbor' Rule
California recognizes part-year residency for individuals moving into or out of the state during a tax year. The state also offers a 'safe harbor' rule for certain individuals domiciled in California but outside the state for employment. Under this rule, you may be considered a nonresident if you're outside California for at least 546 consecutive days for an employment-related contract, meet specific income criteria, and maintain limited connections to California. This rule provides some flexibility within California tax residency rules for those working long-term assignments outside the state.
The 'Leaving California' Checklist and Residency Audits
California is known for its thorough residency audits, especially for high-income individuals claiming to have left the state. The FTB provides a 'leaving California' checklist to help determine if you've successfully changed your tax residency. This includes selling your California home, obtaining an out-of-state driver's license, and changing your voter registration. When attempting to establish non-residency in California, it's crucial to take decisive steps and maintain detailed documentation. Understanding these aspects of California tax residency rules can help you navigate potential audits and disputes with the FTB.
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