@ruby25zgheng Ni Hao! ( one of the two Chinese words I know ).
Based on your response what I get is as follows :
1. you are both US persons and therefore US will tax you on world income .
2. you are each eligible for Foreign Earned Income exclusion ( FEIE ) using form 2555.
3. your husband was / is a California Resident but for 2023 he will need to file as Non-Resident- Part-year Resident -- form540-NR ---- and -->
" Part-year resident
If you lived inside or outside of California during the tax year, you may be a part-year resident.
As a part-year resident, you pay tax on:
- All worldwide income received while a California resident
- Income from California sources while you were a nonresident"\
4. The same rules apply to both of you --- you file California showing :
(a) Husband's world income till he left California and moved to China and ONLY California income after first full day in China.
(b) Your world income till the day you left California and moved to China and ONLY California income after first full day in China.
(c) Note that while you worked for the California entity while residing in China ( Tax Home China ) is NOT California income -- it is Foreign ( China sourced ) income and not taxed by California.
5. Community Property rules ( i.e. each spouse counts 1/2 of total family income as his/her own for tax purposes ) apply while one is a resident of a community property state. Your husband became a non-resident of CA once he left the state permanently ( actually for job abroad) and domiciled in China. Same applies to you.
6. The fact that you have CA driver's license and bank accounts just says that you have some connection to California but you are still a Non-Resident of California.
In closing, I am sorry it took such a longtime and so many interactions to answer fully your question but I wanted to be sure that my logic will stand.
BTW -- while preparing your return consider a copy of form 540-NR handy ( download from --> 2022 Form 540NR California Nonresident or Part-Year Resident Income Tax Return Form ) -- this will help in guiding as to what you are filling out.
XieXie
Is there more I can do for you ?
pk
