TX income taxed in CA?

[dsi]

Husband lived and worked in TX for all of 2008. Wife lived and worked in CA for all of 2008. They are filing MFJ. Does his income get taxed in CA?

[taxmandan]

Sounds like tax home is Texas

Husband lived and worked in TX for all of 2008. Wife lived and worked in CA for all of 2008. They are filing MFJ. Does his income get taxed in CA?

California might disagree, but his tax home is/was Texas and he would only owe state tax to them not CA. Which is convenient since they don't have an income tax. It can get complicated if he has a CA driver's license, bank accounts, insurance on his cars and a home mortgage in CA, but he doesn't owe Arnie anything. File a MFJ CA non-resident return and report only her income for CA.

[DTS]

dsi

I had a situation like this last year with a client that moved to NV from CA. I had to search a bit, but the short answer to this is that it comes down to whether his intention is to return to his family or his "roots" in CA. Try these links to see if they will answer some questions for you:

http://www.ftb.ca.gov/forms/misc/1100.pdf

D

[dsi]

He moved to CA in 2009. They do have a home in TX that they built a couple of years ago.

[David1980]

California has an option to file MFS when a spouse was never in California and had no California source income. This is an exception to the rule that the state filing status must be the same as the federal filing status.

Not as nice as how some states handle it, but better than taxing his income.

[travis bickle]

Ca540nr

California has an option to file MFS when a spouse was never in California and had no California source income. This is an exception to the rule that the state filing status must be the same as the federal filing status.

Not as nice as how some states handle it, but better than taxing his income.

shows how to "adjust out" non-California income [when one spouse is a non-resident] and transfer the correct amount to CA540 -- no need to file MFS.

Also, FTB pub 1100 gives complete instructions and examples for this situation.

[David1980]

shows how to "adjust out" non-California income [when one spouse is a non-resident] and transfer the correct amount to CA540 -- no need to file MFS.

Also, FTB pub 1100 gives complete instructions and examples for this situation.

Well that is much better, I can't complain about that at all.

[Davc]

You may have a problem. Texas and CA are both community property states.