My daughter, a college student, resided in a foreign country the entire year except for a brief visit to the US. She earned $0 in US but does have a job in this country.
Does she have to file a federal or state (California) return for 2023 (other than the FBAR)?
She will not be living in the US in 2024.
If she is a US citizen or a US resident then she is required to report her income, foreign or domestic, on a US federal tax return.
@DanaBan how much did she earn? if less than the standard deduction ($13,850), there is no filing requirement.
If her income was from self-employment and she received $400 or more then she required to report that income on Form 1040 using a Schedule C.
Thank you. She is a citizen but not a resident of the US. She would still file a 1040? NR?
Yes, more than $13k but she does not live in California anymore. She is a full-time resident of another country since 2021 but last year she had income. Please point me to the CA state regulation regarding the filing requirement. I am not sure why she would have to file in California and not just a Federal return.
Thank you.
She was a part time employee then a full time employee of a firm in another country.
@DanaBan wrote:
Thank you. She is a citizen but not a resident of the US. She would still file a 1040? NR?
Since she is a US citizen then she would file a Form 1040. The Form 1040NR is only for persons that are not a citizen or not a US legal resident.
Yes, more than $13k but she does not live in California anymore. She is a full-time resident of another country since 2021 but last year she had income. Please point me to the CA state regulation regarding the filing requirement. I am not sure why she would have to file in California and not just a Federal return.
Thank you.
@DanaBan --
If your daughter has established her main, primary home (her domicile in tax terminology) in another country, and she has no California-source income, then she has no income tax obligation to the State of California.
You can find California's detailed rules on residency here:
https://www.ftb.ca.gov/forms/2023/2023-1031-publication.pdf