wallace_cpa[at]msn.com wrote:

- quote -

I'll address the CA side. Having been living and working in
CA for 4 years the state presumption is that he is a CA
resident. He would have to show using all facts and
circumstances that he is only in CA for a temporary or
transitory purpose for CA to treat him as a nonresident.
Assuming that the CA FTB won't bite and that he is a CA
resident or wants to be treated as a resident, he may still
be domiciled in ID and not CA. CA differentiates between
the two concepts of residency and domicile. If ID is still
his domicile, then his CA income is not community income. It
is separate income and all taxable by CA. As a resident,
his worldwide income would be taxable by CA. As his wife is
not a resident of CA, he could either file a CA joint or
married separate tax return. Naturally, if he files
jointly, all of their worldwide income becomes subject to CA
tax. If he files as married separate in CA, then only his
worldwide income is taxed. In CA, the tax rates for married
separate are the same rates used for single filing status.

--
Alan
http://taxtopics.net

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Situation: Taxpayer lived and worked in Idaho for 20 years.
Has wife and kids and owns a home in Idaho. Four years
ago, taxpayer moved to California temporarily for work.
Ever since then, taxpayer has been living and working in
that state but continues relationship with family in Idaho
and travels back and forth frequently.

Should this be a married separate return with one spouse
filing Idaho as residence while the other lists California
as residence? Idaho state guidelines seem to interpret the
situation as the taxpayer still being a resident. There are
potential tax savings by claiming California as residence.

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