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I was a permanent resident of NY and worked for a NY company all year. But, I spent months vacationing in CA, working remotely. Do I owe taxes to CA? What % of my income?

CA says: As a nonresident, you pay tax on your taxable income from California sources.

My wages from the NY employer were not related to "rent from real property located in California", "the sale or transfer of real California property", or "income from a California business, trade or profession." Does my remote work for the NY company count as "services performed in California", since it's just traditional office work that was fully unrelated to CA?
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2 Replies
ColeenD3
Expert Alumni

I was a permanent resident of NY and worked for a NY company all year. But, I spent months vacationing in CA, working remotely. Do I owe taxes to CA? What % of my income?

You are correct that this was not a CA-sourced income. You don't owe taxes to CA.

Hal_Al
Level 15

I was a permanent resident of NY and worked for a NY company all year. But, I spent months vacationing in CA, working remotely. Do I owe taxes to CA? What % of my income?


The California Franchise Tax Board issued
guidance on the “stay-at-home” executive order
including the following question and response:
“Scenario 1: You work for an out-of-state employer
and receive a W-2 from them. You temporarily
relocate to California. Do you need to file a
California return and pay California income tax?

 

Answer: Yes. As a nonresident who relocates to
California for any portion of the year, you will have
California source income during the period of time
you performed services in California. You will need

to file a California Nonresident or Part-Year
Resident Income Tax Return (Form 540NR) return
to report the California sourced portion of your
compensation. One way to calculate the portion of
your income that is California sourced is to multiply
your total amount of income for the year by a ratio of
your total number of days performing services in
California over your total number of days performing
services worldwide.

Reference: https://www.hodgsonruss.com/assets/htmldocuments/Telecommuting_5.22.20.pdf

 

NY will give you a credit, or partial credit, for  tax paid to CA

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