California FTB sent our 1099-G to a new address (It was not forwarded by post office, instead the new address was printed on it). How do they track our address change?

[p-----]

We were part-time residents of CA in 2014 with primary residence in MI. In 2015 my wife started school in UCLA . Both of us signed a lease agreement for her apartment in LA and the utility bills are in my name as she don't have SSN. I still live and work out of Michigan and there are no 2015 W2 for me or my wife in CA. Surprisingly FTB sent 2015 form 1099-G (for the 2014 tax refund) to the Los Angeles apartment address. Does this mean FTB track our address based on apartment lease/utility bills and consider us as California residents for tax purposes? Please note that both of us still hold MI drivers license and never took a CA license. Do we have to file CA income tax return even though we don't have any income generated from CA and given my wife will be returning to MI after her graduation.

[JohnH2 · Accepted solution]

If you need a copy of your California Form 10998-G, you can obtain this information on line.  The following link, furnished by the California Employment Development Department will get you started.  You can click on the “Can I get my Form 1099-G information online?” question.  The drop down directs you to access your UI Online account.

This is the link:  http://www.edd.ca.gov/Unemployment/FAQ_for_1099G.htm.

With respect to your California income tax question, you have a 2015 lease in California which indicates that you will be in California for other than temporary reasons.  You may not have any California income but we suggest that you still file because you leased property in the state.

[p-----]

Thank you for your response. The apartment lease is until her course ends , it is with the UCLA university apartments and the lease voids the moment she graduates/leave the course. If that doesn't count as a temporary stay then do we  have to pay both MI and CA tax? I have only one W2 and it has only MI income. For which income will we pay CA tax? Will it be on the entire 2015 income or part of it ? I am clueless how to divide it between CA & MI. Will appreciate your insights.

On the second part, do you know if they track address and state of residency based on an apartment lease? I am not sure how they got our LA address in their records to send the 10998-G form.

[JohnH2]

If you need a copy of your California Form 10998-G, you can obtain this information on line.  The following link, furnished by the California Employment Development Department will get you started.  You can click on the “Can I get my Form 1099-G information online?” question.  The drop down directs you to access your UI Online account.

This is the link:  http://www.edd.ca.gov/Unemployment/FAQ_for_1099G.htm.

With respect to your California income tax question, you have a 2015 lease in California which indicates that you will be in California for other than temporary reasons.  You may not have any California income but we suggest that you still file because you leased property in the state.

[p-----]

Thank you for your response. The apartment lease is until her course ends , it is with the UCLA university apartments and the lease voids the moment she graduates/leave the course. If that doesn't count as a temporary stay then do we  have to pay both MI and CA tax? I have only one W2 and it has only MI income. For which income will we pay CA tax? Will it be on the entire 2015 income or part of it ? I am clueless how to divide it between CA & MI. Will appreciate your insights.

On the second part, do you know if they track address and state of residency based on an apartment lease? I am not sure how they got our LA address in their records to send the 10998-G form.

[CalCountry]

Various states, many counties, state and local agencies and police departments, the IRS, Social Security, the Department of Homeland Security, the Postal Service, the Department of Defense, the Department of State, the Justice Department, insurance companies, medical providers, schools, corporations, marketing organizations, and certain other government agencies which shall remain nameless; all have a variety of interconnected information linkages through which data is exchanged.

[p-----]

Thank you for your response. Given my scenario , would you please let me know how  should I handle the state tax?

[CalCountry]

It looks like TurboTaxJohn2's advice is applicable.  You (and/or your wife) could be seen to have established residency.  Whether you did or did not establish residency, the 1099-G does not represent 2015 "income" for California tax purposes.  However, if you established residency, then potentially your joint total worldwide income may be subject to California income tax.  It would be wise to review California FTB Publication 1031, "Guidelines for Determining Resident Status," at:  <a rel="nofollow" target="_blank" href="https://www.ftb.ca.gov/forms/2015/15_1031.pdf">https://www.ftb.ca.gov/forms/2015/15_1031.pdf</a>

In particular, review "Section H - Temporary or Transitory Purposes" on page 4.

[p-----]

Thanks for the response and sharing the document. Consider the example  "you moved to California
on an indefinite job assignment" , I guess the catch is the word "indefinite", with regard to our  case my wife has a definite graduation date (June 2017 ) and I continued to be in MI even though I was on the lease . So I am a bit confused on how to proceed.  Assuming the best case scenario ( our move doesn't qualify as a permanent move), in that case do we still need to file a CA state return (if so what income will we show on the return) ? If we file the return only to MI and not to CA , what's the worst thing that can happen.?

[CalCountry]

Of course the "worst" thing is always jail, deportment, seizure of assets, etc.
Well, you certainly have me thoroughly confused.  How did you file federal/California taxes in 2014 (and then receive a 1099-G in 2015 for a refund) when your wife has no SSN?  Is she a resident alien?  Does she have an ITIN?
I think you should seek professional tax advise for solutions to your problem.  Good luck.

[p-----]

In 2014 I had a temporary job assignment in CA and my 2014 W2 had a CA income. My wife had no CA connections then. She started school in CA in May 2015. You are right , she is a resident alien and has an ITIN.

[p-----]

Missed to mention that we filed both MI & CA taxes last year as we are MI residents and had CA sourced income. This year the confusion is there is no CA sourced income on the W2.

[CalCountry]

Okay, then, if you are satisfied you (and your wife) remain non-residents of California, and neither of you had ANY California-source income in 2015, it would appear you're off the hook for filing CA state income tax for 2015.  However, check it all out with a tax professional just to be sure.  Adieu.

[p-----]

Thank you , appreciate your inputs.