Is this still the case or have the definition of non-resident changed?

[inet4-ed]

I'm getting audit notices from Calif for income that came from a Calif university.  I wasn't in Calif at any time and all my work is done online. They seem to be heading towards a position that I have to pay for those students who were residents in Calif regardless of where I am located.

[SteamTrain · Accepted solution]

They may be moving towards a telecommuter tax in CA...Like NY

....NY has successfully claimed that a person telecommuting to a NY job site from another state....that income is NY-sourced-and NY-taxable income.

I haven't seen where CA has changed their tax laws in the past year to come more in line with what NY does, but I don't really know whether CA has passed some subtle-hidden tax law tacked onto something else this year.  What you just said seems to be a strange mixture of that, with the added complication of applying only to the portion of you income that is tied to CA-students.

You can certainly reply to them, challenging their assertion, and claiming that since you live, and work remotely from another state, and never stepping into CA physically...that all of that income is not CA-taxable.  IF they don't relent, then your only recourse is help/advice from a CA tax attorney.

[SweetieJean]

https://www.ftb.ca.gov/individuals/filertn/nonresidents-part-year-residents.shtml

[inet4-ed]

Steamtrain -- thanks.  I'm waiting for their answer to my response.  The CA CPA, along with a lawyer friend, didn't think the tax applied to me but suspect I'll have to eventually take it to an attorney.  

SweeieJean -- thanks to you too.  I have that link along with several others from the ftb.ca website.  Most of their answers are vague though the one you supplied is most specific.  Guess a tax attorney will need to "interpret."  I need to get from ftb the specific code they are using if they claim I owe $$$.  I've been out of the state for almost 20 years so this was a surprise.

[SweetieJean]

Check your contract with the CA university. It may say something on the subject.

[SweetieJean]

<a rel="nofollow" target="_blank" href="https://www.ftb.ca.gov/forms/2017/17_1031.pdf">https://www.ftb.ca.gov/forms/2017/17_1031.pdf</a>

[inet4-ed]

Again, thanks SweetieJean (sorry I misspelled your name before) -- The contract doesn't have anything and goes back at least 10 years so probably prior to the latest stuff.   According to ftb.ca site, they were to notify me of this but haven't.  I'll take your suggestion and give them a call.