Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
curious6
New Member

Does active duty military pay CA state tax if not resident of CA?

 
5 Replies
MaryK1
Level 9

Does active duty military pay CA state tax if not resident of CA?

No, under the SCRA, an active duty servicemember retains their state domicile when joining the military and only pays tax on their active duty pay in the resident state.  If you do not have any CA income other than the active duty pay, you do not have to file a CA return.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
doynerdc
New Member

Does active duty military pay CA state tax if not resident of CA?

It would appear they've started to try to shake-down military folks will tax bills for their non-resident military income.

joerackovan
Level 1

Does active duty military pay CA state tax if not resident of CA?

I also just received a notice as well. Probably some kind of automated system of theirs. Looks like I'll have to wait until after Veterans Day to call them and clear it up. Hope they don't expect us to actually pay it being that it's illegal taxation. Were you able to resolve it fairly painlessly ?

Critter
Level 15

Does active duty military pay CA state tax if not resident of CA?

The fact that a non-resident independent contractor who provides services to CA businesses must pay CA taxes on that income is a very recent development, and is due to two court decisions made this year (2019) - the most recent of which was a month ago. 

 

Thus it's very possible that you may run across older answers on this board that were correct at the time, but are correct no longer.  

 

You can read the details of those court decisions here:  https://www.coblentzlaw.com/california-office-of-tax-appeals-gives-precedential-authority-to-bindley...

 

 

In May 2019, the California Office of Tax Appeals ruled very recently that income from California-based clients is taxable as California source income.

 

For some discussion:

https://www.coblentzlaw.com/california-office-of-tax-appeals-gives-precedential-authority-to-bindley...

 

https://money.stackexchange.com/questions/95243/is-self-employed-work-performed-out-of-state-for-a-c...

 

joerackovan
Level 1

Does active duty military pay CA state tax if not resident of CA?

Right, an independent contractor makes sense. I was an active duty service member on orders to Camp Pendleton CA. I was always domiciled in Oregon. So I’m pretty sure I’m covered under the Federal Service Member Relief Act

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.49m
Members

2.62m
Discussions

Manage cookies
v