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dmwahle
New Member

If I move from CA to AZ and become a resident, I will work remotely for my CA company, with state income withholding still in CA. How do I file? Will AZ write-off the ta

 
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ChelsiE2
New Member

If I move from CA to AZ and become a resident, I will work remotely for my CA company, with state income withholding still in CA. How do I file? Will AZ write-off the ta

When you move from California to Arizona and work remotely for a California company, you are no longer subject to taxation by the State of California.  This holds true even though the company who employs you is located in California.  This California company should withhold Arizona State Taxes for you.

If you moved to Arizona in 2015 and you've still been paying California taxes, then you will need to file a Part Year California return.  Only the income you made while a California resident will be subject to taxation by California.  You will likely receive a refund for the amount applicable to wages earned while an Arizona Resident.  You will also owe Arizona taxes based on the amounts you earned while an Arizona Resident.

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ChelsiE2
New Member

If I move from CA to AZ and become a resident, I will work remotely for my CA company, with state income withholding still in CA. How do I file? Will AZ write-off the ta

When you move from California to Arizona and work remotely for a California company, you are no longer subject to taxation by the State of California.  This holds true even though the company who employs you is located in California.  This California company should withhold Arizona State Taxes for you.

If you moved to Arizona in 2015 and you've still been paying California taxes, then you will need to file a Part Year California return.  Only the income you made while a California resident will be subject to taxation by California.  You will likely receive a refund for the amount applicable to wages earned while an Arizona Resident.  You will also owe Arizona taxes based on the amounts you earned while an Arizona Resident.

rob1
Level 2

If I move from CA to AZ and become a resident, I will work remotely for my CA company, with state income withholding still in CA. How do I file? Will AZ write-off the ta

I thought Cali has pretty strict Telecommuter rules... <a rel="nofollow" target="_blank" href="https://www.palmspringstaxandtrustlawyers.com/nonresidents-working-remotely-for-california-businesse...>


Note, this entire analysis assumes the nonresident is an employee of a California firm.  If the nonresident is an independent contractor, different rules applies.  Specifically, even if the independent contractor never set foot in California, if he is performing services for a California customer, he is likely “doing business in California,” which falls under a totally different set of stringent, complex rules, and which usually result in a tax liability of some sort.  This problem also applies to out-of-state entities that perform services to California customers.  See “Internet-Based Companies and ‘Doing Business’ in California: Be Careful What Your Website Says About You,” for an overview of those rules.

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