If I lived majority of the year outside of the U.S., do I need to specify this in Turbo Tax?

[yoshl]

If I lived majority of the year outside of the U.S., do I need to specify this in Turbo Tax?

[DoninGA · Accepted solution]

When entering your personal information in TurboTax you will be asked what is your resident state;  where you lived is as of 12/31/2022. 

If you lived outside the US on this date then in the dropdown for states, scroll to the bottom of the list select Foreign or US Possession.  Otherwise select the state where you lived on 12/31/2022.

You will also be asked if you resided in another state in 2022.  If you moved to your resident location in 2022, then enter the state or select Foreign or US Possession and the date you moved to your resident state or Foreign location.

[yoshl]

@DoninGA 

Would this prompt Turbo Tax to remove my CA state tax? because I heard that just because I wasn't in California at the end of the year, that wouldn't excuse me from filing/owing to CA. I don't have much income and rarely owe CA state taxes anyways but I'd rather play it safe and keep filing if possible. 

Moreover, does living abroad change how much Federal taxes I owe? I'm not taking any special elections including FEIE. 

[DoninGA]

If you reported that you were living in CA and then moved to a foreign country during 2022 in the My Info section of the program, TurboTax would have you complete a part year resident CA state tax return.  You would report all your income while a CA resident on the CA state tax return.

There are no changes to how federal taxes are assessed based on where you live.

[yoshl]

@DoninGA 

What if I'm a green card holder currently living abroad on a reentry permit (which means I intend on returning to the U.S.) Do I just keep it CA as my address?

I'm a green card holder who lived in CA but have been living abroad since 2021 with a reentry permit which allows me to remain outside the U.S. for 2 years without losing the green card. I returned to the U.S. in 2023 and reapplied for the reentry permit to stay out of the U.S. for another 2 years. The reentry permit is meant to be temporary and that I intend on returning to the U.S.

On Dec. 31 of 2021, 2022, and probably 2023 I would be abroad. Am I supposed to select that my permanent residence is now abroad in the info section? Or should I keep it CA? I have to file CA state taxes anyways, and it is where I intend on returning but wasn't sure what to do. 

looking at the section in question, it says "

State of residence (on December 31, 2022)

Usually your state of residency is the place you intend to be your permanent home. You aren't living in the state for a temporary purpose. It's the place you return to after a vacation, business assignment, or away at school.

You can only have one permanent home. States often refer to this as your domicile.

Some states have a "days test" and if you spend more than a certain number of days (often 183 days) of the taxable year in their state, they consider you a resident for that year."

Is it important to state that on Dec 31, I was abroad instead of in CA?

[DoninGA]

@yoshl I will page one of our experts who is very familiar with these types of situations to assist.  @pk