Why does Turbo Tax present error when the date I became a resident of foreign country is NOT in 2021?

[tamtam]

Hello:

I am an U.S. citizen and California resident who moved to Hong Kong for my job since September 2020.  In answering the question below related to State of Residence for 2021 tax return, I wanted to answer 9/1/2020 because that was when I started working abroad.  Nevertheless, Turbo Tax presents an error and requires a date in 2021.  Any idea on why the error and is it ok if I put 1/1/2021 just to get pass that error?  Thanks much!!

[DanaB27]

Please be aware, if you lived all year in Hong Kong then you will select only Foreign possession and answer "No" to "...lived in another state in 2021"

Please see this article Determining CA State Residency for Your Expatriate Tax Return for additional information.

[tamtam]

Appreciate the reply and I happened to read the recommended article while I was researching this error😀!  The challenge is that when I answer 'No' to "...lived in another state in 2021", Turbo Tax would think that I don't need to file state tax but I do given my ties in California.  Can you please advise how I can still use Turbo Tax to prepare for California tax return when I answer 'No' to that question?

[MarilynG1]

If you didn't live in California in 2021, but have California-source income, you need to file a 'Non-Resident' return there.  Indicate NO to 'lived in another state'.

You will come to a screen asking if you 'made money in other states' where you can indicate California (screenshot). 

Click this link for info on How to File a Non-Resident State Return.

[tamtam]

Thanks!! However, I did NOT have any California-source income.  All of my income in 2021 was salary received in Hong Kong.  Therefore, the statement "Yes, I made money in states other than a foreign country" in TurboTax doesn't seem to accurately describe my situation (because my income was from a foreign country).  I am stuck😂.  Please please assist.

[MarilynG1]

Why do you feel you need to file a California return?  Please clarify and we'll try to help.

[tamtam]

Really appreciate all the help!!  After more research, I think I should be considered as nonresident given (a) I am single and don't own a house or car in CA; (b) remaining "ties" I have with CA are my parents who live in CA, bank & 401K accounts, driver's license, and voter registration;  (c) I meet the "Safe Harbor" rule in terms of being outside of CA for an uninterrupted period of at least 546 consecutive days  (except  I am not sure whether a written employment contract is truly needed.  The fact that my working visa is sponsored can be considered as a contract from my perspective).  This means I don't need to file CA taxes.  Am I on the right track and does this align with what you are suggesting? Thanks again!

[MarilynG1]

Correct, you don't need to file a California State Return, since you have no CA income to report.

This link has more info on Why Would I File a Non-Resident Return?