CA Residency: Out-of-State student graduated

The issue of residence is more one of intent than anything else. As long as she intends to return to California, and she hasn't put down roots anywhere else that would indicate that she has abandoned her intent to return to California, she can continue to claim California residence.

I haven't figured out how to quote using the google groups interface in my smartphone....

There are the separate concept of "residence" and "domicile". The term "domicile" is defined (approximately) as the place which, when you leave, you intend to return. Either can subject you to "resident" taxation.

She might conceivably be a resident of MD as early as 2013, but she is domiciled in CA until such time as she selects a new, "permanent" address away from your home. "Address" can be a region, rather than a specific address, although you'd probably have to go to the appellate level in California if it isn't a specific address.

-- Arthur Rubin, AFSP, CRTP, Brea, CA

At her level of income paid to the state of California thus far, would they really chase after her? Calif. would not know her income post graduation if she no longer files in Calif.

Point taken. But, if no California return is filed, there is no statute of limitations....

On another board, there is a report (last year) of OH going after a taxpayer for a 1993 return which wasn't filed. I would not be completely surprised if AZ decided to go after me for 2001 and following returns; after all, my bank accounts are still technically at an AZ branch of a multistate bank (because new accounts don't have as many perks as old accounts); although my only other quasi-residential contacts with AZ are a relative who I've visited twice since then, and an AZ handicapped placard which we never turned in. (We did turn in the drivers licenses.)

So if you are leaving the state you should file a non-resident return showing zero state income?

On Saturday, March 25, 2017 at 9:25:11 AM UTC-7, Taxed and Spent wrote

When you've left the state; when you're leaving the state, you may still have a part-year resident return.

And yea. It provides more income for the tax preparer, but also more safety for the taxpayer. I also recommend reporting excluded home sales.

-- Arthur L. Rubin, CRTP, AFSP, Brea, CA

Arthur Rubin wrote on 3/26/17 11:10 AM:

I don't believe she has any intent to come back to CA (fond wishes of parents notwithstanding). For 2016, she was still a student, so we will file a CA return. For 2017, she will get an out-of-CA license and then likely file a non-resident /part-year resident "closing" CA return

Thank you for the feedback.

-- Shankar Prasad

At her level of income paid to the state of California thus far, would they really chase after her? Calif. would not know her income post graduation if she no longer files in Calif. ==== California is so poor (i.e. big deficit) that they'll chase after everything.....