California resident, OCI Card, living in India

[Shine1312]

Hello!
I haven't found anyone with a similar situation as mines.

I am a California resident, with a home address and Driver's license of State of California. I was born in US (1992), and am a US Citizen with an SSN and everything. I do have interest income, so I file taxes in California itself.

Apart from this I also have an OCI card (Overseas Citizenship of India). I have been staying in India with that since atleast 2010. I do not have a job, but I am doing charity work with a dog shelter in my area.

I do visit California once or twice a year, with my last visit being in March 2020. I'm well educated with a Masters Degree, and have taught English to college students in the past. I now want to start a remote job for any Company in California (data entry or any beginners job would do), but I'm having a hard time figuring out where and how I am allowed to apply and what would be the tax implications.

I plan to stay in India for now, but have no problem visiting California once in a while.
So my questions are,

Can I work a remote job for anyone in California, while remaining to live in India? What would be the tax implications?

Since I have not physically been present in California since 2020, Can I apply to remote jobs outside of California- as in for other States of USA?

Any additional information related to the same would be highly appreciated.

[pk · Accepted solution]

@Shine1312 ,  one of us can only address the tax implications of working and earning.

(a) As a US person ( Citizen/GreenCard), you are taxed by the USA on your world income, no matter where and how earned.

(b) AS you perhaps know that for purposes of US taxes , US does not recognize any other citizenship  and essentially its tax laws apply to you  in isolation.

(c) If India taxes you on your income  then there is possibility of  Foreign Earned Income exclusion or Foreign Tax credit  / Deduction -- which ever works out best for you.   A point to note is that if India taxes you on income from USA then for purposes of  Foreign Tax Credit , you have to do a treaty based  resourcing of the income  -- to ameliorate the effects of double taxation.

Side bar -- there is no restriction  to any  US entity from employing you  --- because you are US citizen.

Is there more I can do for you ?

Namaste

pk

[Shine1312]

Namaste! 

Yes one more question,

Since California has different laws for independent contractors, it would be easier for me to apply for a job for other states such as Washington, Arizona, etc. But whenever I come across a remote job listing, 99% of the time it mentions that the listing is not for residents of California.

In my case, if I have not been physically present in California since the last 3 years, but my home address is in California, am I still considered a resident of California ? Is there a way around this by which I can apply to these jobs of other states? 

[TomD8]

If you've been making your home in India for over 10 years, and you no longer maintain a home in California, and your visits to California are temporary or transient, then for tax purposes you are a non-resident of California.

California taxes non-residents only on California-source income.  If you take a job as an independent contractor (as opposed to as a W-2 employee), then any income you earn by providing services to California-based clients is considered California-source income, and is taxable by California.

California Publication 1031 has extensive information on how to determine your tax residency.  Here's a link:

https://www.ftb.ca.gov/forms/2022/2022-1031-publication.pdf

[pk]

@Shine1312 , generally agreeing with the thoughts / clarification of  @TomD8 ,  I am struggling with a few things in your post

(a) since you are working at a remote site abroad ( India), your income is sourced to where the work is done  --- California  or any other state labor laws do not apply.   

(b) Barring specific situations/ circumstances ,  your claim to California residency may not apply either -- please familiarize yourself with the reference suggested by @TomD8 .  Just the use of Postal Address  may or may not be  indicative of residency for tax purposes.

(c) Equally well I do not understand  your comment about  some adverts for remote work stipulates  residency requirements  -- is it for tax purposes or what .

I am not sure what , taxwise , you are trying to achieve.  Please tell more  and one of us would help to the extent that we can.