@howjltx1 wrote:
So, if I understand the link you sent correctly, with my filing status "Married/RDP filing jointly no dependents, both are under 65" my threshold is $38,624 of Salary earned while I am in California? In other words, I will begin paying California taxes on my salary after this amount. Would my retirement income I am get from Boeing be included in this calculation?
What this is saying is anyone having bonified business trips, even for the US Government, there normal salary above this threshold is subject to California tax. I find this hard to believe. If it is true, I am sure California would figure out who is staying for how long at California hotels and go after them. Something Imay is not correct here or I need to make sure I do not exceed that threshold.
Second thought update, no one in California is paying my income I am paid out of another state by my employer, so my income from California is $0.00.
No. The first question is, "are you required to file?" That is determined by the thresholds. If either the total income threshold, or the CA income threshold is passed, you must file a non-resident return.
However, the question "how much of my income is taxed in California?" is, only your California-source income. That is, only the income earned or paid while you are physically working or living in California.
Your second thought is also wrong. For a W-2 employee, your income is considered California-source if you earn it by physically performing your work in California, even if your employer is located somewhere else.
Yes, California is very aggressive about finding people to tax. Consider a football player for the New York Giants who plays one game in San Francisco. Roughly 1/18th of his salary for that year (one game's worth) is taxable in California, and California will certainly be looking for that income. People who are less public may be able to get away with not reporting California income, but that doesn't make it legal. And the problem with tax returns is that the statute of limitations only starts when you file, if you never file, the statute of limitations never starts to run. So legally speaking, if you work one month in California on a temporary assignment, 1/12th of that year's income is taxable in California, even if your employer never issues any tax paperwork to the state that would let them know. If you roll the dice and decide not to report California non-resident income, you might get away with it, but if the state finds out, they can come after you at any time for the rest of your life, with a demand for tax plus interest and late payment penalties.
