Client has for many years maintained his tax home in IL with his wife and children--house, registered to vote, driver's license, car in license, etc..
In 2018 he contracted with a medical staffing company from CA that contracts thru UCSF for client to work as a medical staffing professional in a hospital in Liberia from Jan 11-Jun 10, 2018. His income $58,000 was reported on W-2 from UCSF with CA withholding and using his IL address for reporting purposes. His wife and children lived in IL Jan 2018-June 2018 until they moved to rented housing in CA in Jul and the children attended school in CA from Aug-Dec. From June 29-Dec 31 the husband worked as an independent medical services contractor for Echo Locum Tenens for work in CA with earnings of $78,000 reported on 1099-MISC box 7 still using his IL address for reporting purposes. In early Jan 2019 the entire family moved to Liberia for husband to fulfill his contractual obligation to work there until June 30, 2019. Presumedly, this will also be reported on a W-2 with CA withholding. They still maintain their home in IL.
They are undecided where he will work or where they will live after June of this year.
Given the above facts, how should he report his income for state purposes? PY CA PY IL? Ignore the fact that the wife and kids lived in IL for part of year and report everything as CA source and a full year resident? I understand that CA is very aggressive to treat anyone who has a connection with CA as a resident for state tax reporting. Is there a significant difference in CA treatment for full year resident vs PY? I really need some CA expert advice on this one! With their home still in IL I am concerned going forward about IL tax reporting for 2018 and 2019. Thanks
In 2018 he contracted with a medical staffing company from CA that contracts thru UCSF for client to work as a medical staffing professional in a hospital in Liberia from Jan 11-Jun 10, 2018. His income $58,000 was reported on W-2 from UCSF with CA withholding and using his IL address for reporting purposes. His wife and children lived in IL Jan 2018-June 2018 until they moved to rented housing in CA in Jul and the children attended school in CA from Aug-Dec. From June 29-Dec 31 the husband worked as an independent medical services contractor for Echo Locum Tenens for work in CA with earnings of $78,000 reported on 1099-MISC box 7 still using his IL address for reporting purposes. In early Jan 2019 the entire family moved to Liberia for husband to fulfill his contractual obligation to work there until June 30, 2019. Presumedly, this will also be reported on a W-2 with CA withholding. They still maintain their home in IL.
They are undecided where he will work or where they will live after June of this year.
Given the above facts, how should he report his income for state purposes? PY CA PY IL? Ignore the fact that the wife and kids lived in IL for part of year and report everything as CA source and a full year resident? I understand that CA is very aggressive to treat anyone who has a connection with CA as a resident for state tax reporting. Is there a significant difference in CA treatment for full year resident vs PY? I really need some CA expert advice on this one! With their home still in IL I am concerned going forward about IL tax reporting for 2018 and 2019. Thanks
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