September 17, 2025 10:03 pm
If you’ve moved overseas but still have ties to California, like a driver’s license, mailing address, or occasional visits you may wonder:
“Am I still required to pay California state income tax?”
The answer depends on whether California still considers you a resident for tax purposes. Let’s break it down.
The ABC Test is a legal framework used to determine whether a worker qualifies as an independent contractor. To meet the test, all three criteria must be satisfied:
Unlike some states that count days of presence, California bases residency on domicile your permanent home and the place you intend to return.
Even if you live abroad, California may still treat you as a resident if your actions suggest the state is your long-term base. Key factors include:
If you haven’t clearly cut ties, California can tax your worldwide income, not just U.S. earnings.
Not usually. For example, one reader living in Pakistan who visited California for two months likely qualifies as a non-resident. His temporary stay doesn’t re-establish domicile.
However, keeping a California driver’s license could raise questions about ongoing ties. Residency is less about presence and more about intention and connections.
Even as a non-resident, you may need to file taxes if you have California sourced income, such as:
For example, if our reader worked for a U.S. employer during his California stay, he’d need to file Form 540NR (Non-Resident Return) and pay tax on those specific workdays.
If all work was done abroad, the income usually isn’t California sourced unless tied to a California employer or performed partly in-state.
You likely need to file if you:
Filing helps avoid penalties and reduces audit risk, especially if you plan to return or invest in the future.
California tax rules can be tricky especially for professionals living abroad. That’s where Nuage Digital comes in.
We specialize in:
Our clients trust us for fast, thoughtful, and global-friendly service whether it’s bookkeeping, payroll, or complex international tax issues.
If you live abroad but still hold California ties, knowing your residency status is crucial. Missteps can trigger unwanted notices from the Franchise Tax Board.
With expert help, you can stay compliant and confident wherever in the world you call home.
📩 Contact Nuage Digital today for personalized guidance and complete peace of mind.
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