State tax for couples with spouse working overseas

[futurenbain8]

Hey Guys,

Im new to the forum, but I have a really specific question to which I can't find the answer to.
My wife works out of the country for over 330 days a year, we live in California. I know she is exempt from state taxes, but am I?

I asked an accountant for the answer to which he said I was not tax exempt from state taxes since I still live here, but he was not sure about his answer. Since she makes all the money, I am just a stay-home dad.

Thank you for your time.

 

[kirby]

Timeout. Here is a direct quote from the California Franchise Tax website regarding individuals:

"If you are domiciled in California and you worked outside of California for an uninterrupted period of at least 546 consecutive*days under an employment contract, you are considered a nonresident."

So that is what it takes to be classed as a "non-resident." Otherwise she is a "resident" and here is the Franchise Tax Board statement on that:

" In general California residents are taxed on all income, including income from sources outside California"

So - ask Mr. Accountant why he is certain that she is exempt and also ask him to SHOW you the California tax law he is basing his answer on. If he convinces you somehow ask him to put his opinion in writing so you can at least sue for the tax penalties and interest. good luck.

 

[futurenbain8]

Oh wow, now that raises another concern for us. Thank you for your reply.

I will certainly do that once we sit down with our accountant again

 

[futurenbain8]

Ok, I just read the requirement of 546 consecutive days out of the state and she does meet it since she only comes home on vacation which is considered temporary. Now I also read, but I'm not sure is that it depends on the spouse to generate the income of whether or not the couple gets taxed by the state.

 

[kirby]

California has more twists because it is a community property state. Because of that half of what your wife earns "exempt" from calif tax is considered earned by you and is now not exempt from calif tax. Please read or have your accountant read calif publication ftb 1031. Not trying to be a buzzkill just want you to get the straight info on this.