As a resident of California I can say that if you live here
they tax all wages regardless of where earned. If one moves
one's tax home here I would say one will owe State income
taxes here.

--
f

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Wayne Rivers wrote:

- quote -

The FTB each year obtains a file from the IRS of all
individual income tax returns filed from California
addresses, and runs that list against the list of California
returns filed. Any taxpayer that filed a federal income tax
return from a California address, reported gross income
above a certain threshold, and did not file a California
return will receive a "request for return" from the FTB.

If the spouse is running a business "out of" California, it
would appear that this couple has California source income
and a filing requirement anyway. Income from a trade or
business carried on in California is California source
income.

Katie in San Diego

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"Wayne Rivers" <wayne[at]wayneriverscpa.com> wrote:

- quote -

I hope so. If the taxpayer's primary residence is in WA,
putting a CA address on the return sounds like a scam to me.
I wouldn't be signing the return as a paid preparer.

It would be fun to be a fly on the wall when the CA FTB
showed up wanting tax on the unreported income of this
purported CA resident , though. "Well, I didn't really live
there, but there was a benefit I could get by pretending to
live there, so...."

--
Phil Marti
Clarksburg, MD

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Question:

A taxpayer wants to use a California address for their
federal tax return so that they can receive medical
insurance through California, but they don't want to file a
California tax return. Their primary residence is in
Washington. The spouse runs a business out of both
locations.

Would this cause any red flags?

Wayne Rivers, CPA

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >