My spouse is in the Navy with orders on Guam. Our SLR is California. I'm currently working but have not changed my withholding with my employer. I know I will have to pay taxes to CA. My question is do I need to change my withholding or will the State be able to collect from Guam Revenue and Taxation? If not what should my next steps be? Change withholding so no taxes are taken out of my income?
Thanks for the help and clarification.
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Ok ... first where are you actually living & working ? And will you not be in CA at all in 2022 ?
Currently living and working on Guam. Will not be returning to CA.
CA doesn't tax income earned outside of CA if you are not living in CA even if your SLR is CA.
Thanks for the reply. If my SLR is CA would I have to pay local taxes?
What local taxes ?
Guam
That is a question for the local tax authorities to answer ... seek local help.
From page 6, California FTB Publication 1032:
"The nonmilitary spouse of a military servicemember who is domiciled in California, but leaves the state with the military spouse on PCS orders outside California, becomes a nonresident upon leaving California. The MSRRA does not alter this result. All income received or earned while a California resident is subject to tax. While a nonresident, only income from California sources is subject to tax."
https://www.ftb.ca.gov/forms/2021/2021-1032-publication.pdf
The income you earn by working in Guam is not "from California sources" and therefore is not subject to California state income tax. Therefore there is no reason for California taxes to be withheld from your pay.
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