California Nonresident Status and Alimony Taxability

Forum|Forum|3 months ago
March 24, 2026
1 reply
216 views

Hi,

I would appreciate guidance on my California tax situation.

I lived in California from June, 2003 until I moved back to Thailand on July, 2023 and have been living here full-time since, with no return visits to California. I now live in Thailand permanently. I do not have a home, a car, employment, or physical presence in California. My California driver’s license has expired, and I have canceled my voter registration. I am a Thai citizen and also a U.S. citizen. I do have a home and a car and Thai bank accounts in Thailand

I currently use a California mailing address for banking and brokerage accounts for convenience, but I do not reside there.

My income consistent of:

- Alimony (divorce finalized April 2023; payments began July 2023)

- Interest, dividends, and capital gains from U.S. brokerage accounts (Vanguard, Schwab, etc.)

My understanding is that, as a nonresident, interest, dividends, and capital gains are generally not California-source income. However, I am unsure whether alimony is considered California-source income for a nonresident living abroad.

My questions are:

1. Should I be treated as a California nonresident for 2024–2025?

2. Are my investment earnings taxable by California?

3. Is alimony considered California-source income in this situation?

4. Would I need to file Form 540NR, or no California return at all?

Thank you for your guidance.

Residency

Best answer by DoninGA

Expert Reviewed

Since you did not live or work in California at any time in 2025 you do not file a CA state income tax return.

Alimony received is not sourced income from a state.

Investment income in 2025 cannot be taxed by CA since you did not live there or work there.

As a US citizen you are required to report all of your income, US and Foreign, on a US federal tax return.

When entering your personal information in TurboTax you are asked for a resident state. Scroll down to the bottom of the dropdown list and select Foreign or US Possession.

DoninGA

Answer

Level 15

Expert Reviewed

Since you did not live or work in California at any time in 2025 you do not file a CA state income tax return.

Alimony received is not sourced income from a state.

Investment income in 2025 cannot be taxed by CA since you did not live there or work there.

As a US citizen you are required to report all of your income, US and Foreign, on a US federal tax return.

When entering your personal information in TurboTax you are asked for a resident state. Scroll down to the bottom of the dropdown list and select Foreign or US Possession.

ptyh12Author

Level 2

Hi,

Thank you very much for your previous responses. I would like to clarify one important detail regarding my situation.

I am a California nonresident for 2024–2025, currently living in Thailand permanently.

However, my alimony is paid by my ex- spouse who lives and works in California, and our divorce was finalized in California in April 2023 (while I was still a California resident until July 2023).

My question is specifically:

If the payer (my ex-spouse) resides in California and the divorce agreement was executed in California, does that make the alimony California-source income for me as a nonresident?

Or is alimony generally considered non-California-source income regardless of the payer’s location?

I want to confirm whether this would require me to file a California nonresident return (Form 540NR), or if the alimony would not be taxable by California.

Thank you again

DoninGA

Level 15

@ptyh12 Since the divorce was finalized after December 31, 2018, none of the alimony payments you received are entered on a tax return. The payments are not taxable income, so it is a moot point relative to your spouse being a CA resident.