determining california residency (WFH)

[floridaman]

I moved to California from Florida in 2019/09 to start working there with no predetermined end date. I started renting in California after the move.

In early March 2020, the company started making people work from home, so I moved back to Florida in early 2020/03, while still working for the same employer. In May, I terminated my lease in California. In July/August, my California driver's license is due, and I get my FL driver's license. (Not sure if this piece of information matters, but the employer initially states that people will not be required to return to office until the end of 2020, and then they postponed the time to late 2021.)

My three questions are:

1. Would I be considered a CA resident, or does it make sense to consider myself a CA part-time resident for 2020?

2. How would the answer change if starting from the end of 2020, I started looking for a new job outside of California (Will this show that I'm not outside California for a “temporary or transitory purpose.”)?

3. What if I'm going to accept an offer from an employer outside of California soon? Does that change things in any way?

[JotikaT2]

You will actually file as a nonresident in California for 2020.  California advises those who move in or out of California to file as a part-year resident on Form 540 NR.

You will be taxed on your income from California sources.

In regards to your other queries, it will not have an effect on how you file within California.  Your income is from California sources so as long as you continue to work for the same employer based in California, you will still need to file as a nonresident assuming you continue to reside out of the state.

[floridaman]

Hi Jotika,

Thanks a lot for answering the question! This all look very reasonable! I have one concern though, could you help me check whether my concern is valid?

On the California FTB website, it says:

You’re a resident if either apply:

• Present in California for other than a temporary or transitory purpose
• Domiciled in California, but outside California for a temporary or transitory purpose

I assume that in the last 4 months of 2019 and the first 2.5 months of 2020, I am a CA resident since I was in CA for other than a temporary or transitory purpose. Would the second condition put me in the CA resident category, since the employer would require me to go back to CA after COVID is over? (Or to be specific, in my timeline, starting from when should I be considered "not domiciled in California"? Is it in March when I left CA, or May when I terminated my lease, or at another point in time?)

[DianeW777]

Your residency ended in California (CA) in March when you left. After that date no income is taxable to CA on your part year resident (nonresident-Form 540 NR) state tax return.

[floridaman]

I see. Thanks for weighing in!