Do You Have to Pay California State Taxes on Foreign Income?
California treatment of foreign income
California Allows You To Be Domiciled But Not Pay State Income Tax
Very few states allow you to remain domiciled in their state, but not pay tax on your out-of-state income if you meet certain requirements. California just happens to be one of these states.
If you live overseas and meet the time requirements, which is working outside the state for an uninterrupted period of at least 546 consecutive days under an employment contract, you are considered a nonresident provided you are not in California for more than 45 days in any tax year covered by the contract. If you are a nonresident, you will only be taxed on income from California sources.
When you are ready to have your return prepared please send me an email to get the process started.
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Search: Country: Germany Zip: 65812 Last Name: Hartney
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Available for all taxpayers in every state and all Expatriates living abroad.
CONTACT NICHOLAS HARTNEY, EA
nick@genesistaxconsultants.com
Areas of Practice
expat tax preparation
Foreign earned income and housing exclusions for both federal and state income tax returns. Foreign bank account reporting (FBARs), Statement of Specified Foreign Financial Assets, Tax Treaties, Application for IRS Individual Taxpayer Identification Number,etc.
business tax debt representation
We will file a power of attorney with the IRS and State Taxing Authority to negotiate a hold on all enforcement action such as bank and account receivable levies while we work on an appropriate resolution including Installment Agreements, Company Restructuring, Penalty Abatements, Offer in Compromises, and Currently Not Collectible Status. We will also advise you if bankruptcy is an option.
irs and state tax debt representation
We will file a power of attorney with the IRS and State Taxing Authorities to negotiate an appropriate resolution for back tax debt including Installment Agreements, Penalty Abatements, Offer in Compromises, Innocent Spouse Requests, and Currently Not Collectible Status. We will also advise you if bankruptcy is a option.
new business entity formation
We will educate you of the pros and cons of organizing an Limited Liability Company versus a Corporation, S-Corp., Limited Partnership, etc. and assist in the formation of the entity of your choosing.
previous years tax returns
We will prepare your previous years tax returns to bring you back into compliance with the IRS and State.
business tax return preparation
Whether you have a sole proprietorship with a Schedule C or a 1120 Corporate return we will prepare any business return.
“The hardest thing in the world to understand is the income tax.”
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