should I see myself a resident in California or foreign country?

[likeabird43]

I am now living in my parent's apartment in foreign country which is permanent. I lived in California from 2019-2020 april then lived temporary in foreign country from 2021 May to Nov. but worked remotely for a company in California. 

Then, I came back to Cali on Nov then stayed by 2021 May. From 2021 May to now, I am staying at my parent's apartment which is in foreign country.. 

When I file return on Turbotax, I wrote my parents address as my mailing address as I don't have an actual address in cali right now. But, I have my bank account in the US. 

Should I consider myself non resident in Cali? I am coming back to Cali this June 2022 though. I also applied for Unemployment Benefits with that foreign address then accepted. The staff told me I can get that benefits as soon as I come back. 

Also, I got a royalty income from my copyrights so Turbotax automatically let me fill business address. If I write the foreign address, the Turbotax keeps noticing that it is wrong info because I am a Cali resident. Should I change my info as resident in foreign country?

Thank you very much for your help.. 

[SundayInSalem]

It depends. You contradict yourself. First you say you are living in a foreign country 'which is permanent'. Then you say you came back to California in 2021 and are planning to do so again in June 2022. That does not sound like a 'permanent' relocation.

California defines a resident as someone who is:

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

California also says you can remain a CA resident if you work outside the state for as long as 546 days and do not spend more than 45 days in CA during that period.

For 2021 and 2022, it seems you are either a part-year or full-year resident of CA, depending whether your intent was to permanently move overseas.

A part-year resident would only be taxed on income earned while physically present in CA, though your royalty income may be considered California-source income. Under Legal Ruling No. 145, royalties are taxable during the nonresident period if the intangible producing the income has a taxable or business connection to the state.

A full-year resident is taxed on worldwide income, not matter where it was earned.

Publication 1031 Guidelines for Determining Resident Status has helpful examples for determining residency status on pages 4-6.

[likeabird43]

Thank you for your prompt response and help. I am sorry I meant the foreign address is the address that won't change as it's my parent's house so I had to use this address for mailing address as I don't have a california address right now because my rent contract is done. Also, I had been and am staying at my parent's house while i am in foreign country. 

If I consider myself a resident in California based on the info you provided thankfully, what address should I write for business address as I don't have an address in cali right now? should I write the previous address when I stayed at that time? If I write the foreign address, Turbotax is warning me that doesn't make sense as I consider myself as a cali resident. Also, I don't have income earned out of California except the royalty which turned out to be minus after calculating with expenses.. 

Thank you very much for your help again.. 

[SundayInSalem]

Use your parent’s overseas address @likeabird43 . The address on the tax return should be the address where you want IRS or the Franchise Tax Board to send any mail.

If you have no California income and are a part-year resident, then you may not have to file a CA return.

Generally, you must file an income tax return if you’re a resident, part-year resident, or nonresident and:

• Are required to file a federal return
• Receive income from a source in California
• Have income above a certain amount

Do you need to file?

[likeabird43]

Thank you very much for your help again! I really appreciate it. 

My federal return was accepted but state return was rejected. As I worked in CA during 2021 apart from royalty (from Jan to May), I think I have to file the state return too. In that case, using the foreign address(for my business address as I filed Schedule C due to royalty income) seems weird to Turbotax. My state return was rejected for the first time due to the business foreign address (I think, because Turbotax pointed out that part not sure why). Do you think I should just write the previous CA address or just write the foreign business address and try again?

 I think it's hard whether I determine myself as full or part-resident because right now, I don't have CA address to write down.. so because of that, I used that foreign address for my mailing address then for state return, it automatically added foreign address to other forms as well.. To me, as I had the CA address for 2021, I think writing down the previous CA address makes sense to me because it is for 2021 tax return except mailing address.. or should I just choose part year resident and check which month I was in California? What do you think?

Thank you so much for your help.. 

[SundayInSalem]

I would try e-filing with the old address. 

You can always mail a change of address form (Form 3533) or create an account with the Franchise Tax Board and update your address online, though either is probably not necessary. Any mail will go to the main address on your tax return and you should receive any notices.

Your address will automatically update next year when you file your next tax return.

How do I change my address?

[likeabird43]

Thank you. I will just use old address then ask for the new address. Thank you for the link and information. Do you think it would be just fine just to be a full resident and not let them know I was out of the state during May -December 2021? 

Thank you so much!!.. 

[TomD8]

Your mailing address and your residency for tax purposes are two different things.

Your mailing address is the address you want the IRS or state tax authority to use in case they need to contact you.

Your residency is determined by tax law.  As @SundayInSalem pointed out in his original answer, if California was your domicile prior to your going to your parents' home, and your intent was to stay with your parents temporarily and then return to California, then you file as a full-year resident of California.

California's rule is that "Any individual who is a resident of California continues to be a resident when absent from the state for a temporary or transitory purpose".

You will find California's definition of domicile on page 10 of this reference:

2021 Publication 1031 Guidelines for Determining Resident Status