turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

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

curious6
New Member

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

 
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

5 Replies

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.

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 ?

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...

 

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

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies