KarenJ2
Expert Alumni

Deductions & credits

You can use the foreign tax credit to help offset double taxation.


For the safe harbor your employment contract must be over 18 months. 

The employment contract has to meet the time period on its face; it can’t do so via renewals.  Nor does a series of separate contracts, even with the same employer, adding up to 18 months suffice.  California FTB as you know, is extremely aggressive. 

  

  

The Safe Harbor Rule : Safe harbor is available for certain individuals leaving California under employment-related contracts. The safe harbor provides that an individual domiciled in California who is outside California under an employment-related contract for an uninterrupted period of at least 546 consecutive days will be considered a nonresident unless any of the following is met: 

 

• The individual has intangible income exceeding $200,000 in any taxable year during which the employment-related contract is in effect 

• The principal purpose of the absence from California is to avoid personal income 

es 

 

2018 CA Guidelines for Determining Resident Status 

 
 

 

 

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