As an international F-1 student who lived in WA for over 5 years, I moved to CA on 9/20/2021 and stayed till now. What was my State of residence (on December 31, 2021)?

[b2ah4d69]

I lived in WA for over 5 years so I am considered WA resident and Resident Alien for tax purpose. However, I moved to CA for study on 9/20/2021 and stayed till now. What was my State of residence (on December 31, 2021)?

If I continue stay in CA, when will I become a CA resident? For example, I continue to stay and work in CA after graduating in 2022.

[PattiF]

You were a part-year resident of California at the end of 2021. You were also a part year resident of  Washington for the rest of the year. You will be a full-time resident of California for 2022.

You may need to file returns for both states. If your gross income was $12,000 for 2021, you will need to file a return with Washington. California requires that you file a return if you had income from California or another country.

[b2ah4d69]

Hi. Thanks for your response. A follow-up to the previous question.

My major income was from my internship in 2021. It was a California company but I worked at Washington remotely. I moved to California on 9/20/2021 only after my internship ended. Do I need to pay any form of CA state tax for this internship?

[DaveF1006]

Yes. Generally if you work in California, whether you're a resident or not, you have to pay income taxes on the wages you earn for those services. That's due to the “source rule”: California taxes all taxable income with a source in California regardless of the taxpayer's residency.

Make sure though you indicate that you are a California part-year resident for tax reporting purposes.  Turbo Tax also will make this determination for you based on what you record as your California resident dates.

@b2ah4d69

[TomD8]

"California taxes all taxable income with a source in California regardless of the taxpayer's residency."

True, but wage and salary (W-2) income is sourced where the services are performed.  See Wages and Salaries on page 6 of this CA tax reference:

https://www.ftb.ca.gov/forms/2021/2021-1031-publication.pdf

Therefore W2 wages and salary earned by a non-resident of CA working remotely from a WA location would be sourced to WA and thus not  taxable by CA.

Also. if the taxpayer maintained his primary home in WA and went to CA for a "temporary or transitory purpose" with the intent of returning to WA, he or she would be considered a non-resident of CA.  See page 5 of the reference given earlier.

[b2ah4d69]

Hi. Thanks for your response. However, I did not move to CA and was the resident of WA during the entire internship (CA company). Does it make any difference? Thanks.

[DaveF1006]

No that doesn't make a difference because California is one to the few states that tax California "sourced income" no matter where you live.

@b2ah4d69

[TomD8]

@b2ah4d69 wrote:  "My major income was from my internship in 2021. It was a California company but I worked at Washington remotely." 

Assuming your income was reported to you on a W-2,  the portion you earned by working remotely from a WA location prior to your move to CA is WA-source income, and not taxable by California.  The portion you earned by working in a California location is CA-source income, and is taxable by CA.

[b2ah4d69]

I think @DaveF1006 is correct. I found this while filling TurboTax state return. In the example, Ava lived in Oregon and worked in California at the start of the year but she needs to pay CA tax.

Wages earned while living or working in California can include wages from three different situations:

* Wages earned in California while you were a California resident
* Wages earned outside of California while you were a California resident
* Wages earned in California while you lived outside of California

If only one of the above applies to you, then the wages you earned during that time period is your total wages earned while living or working in California. If two or three of the situations apply to you, you'll have to figure out how much income you earned during each situation and add the amounts together.

Example 3: Ava lived in Oregon and worked in California at the start of the year. In April, she moved to California so that she could live closer to her job. In October, she left her job and started working in Arizona. However, she continued living in California. She earned $15,000 while living in Oregon and working in California, $25,000 while living in California and working in California, and $10,000 while living in California and working in Arizona. Overall, Ava earned $50,000 while living or working in California.

[b2ah4d69]

My permanent address is outside US. I lived in WA for over 5 years so I considered myself as WA resident. I moved to CA for studying purpose and spent 103 days in CA in 2021. Am I a part-time non-resident or part-time resident of CA by the end of 2021? Thank you so much.

[TomD8]

The income you earned from your WA-based remote work does not fit any of the 3 situations you listed.  It is wages earned outside California while you were a Washington resident.