Do I Have to Pay California Income Tax If I’m Moving?

Most people don’t want to pay California taxes. They end up contacting me because they are going to move to Florid, Texas or Nevada. I warn them to make sure they actually decided to relocate, move their family, move their house, move their driver’s license, move their car registration. If they’re actually moving and intend to reside in another state, they will not be subjected to California income tax. California has what’s called a residency tax on it. They’re going to go back and determine whether or not you were a resident of the state of California and therefore subjected to taxes. California looks at how much time did you actually spend in the state? Where did you go to the grocery store? Where is your SG&E bill? Where’s your electric bill? Where did you fly in and out of? What sort of professionals did you hire? Did you hire California CPAs and attorneys, doctors and psychologists? Or did you have a doctor and a psychologist and an attorney and an accountant in Florida? You need to make sure that the residency items they are going to look at is really going to show where you were residing during the period of time with an audit. It’s not just enough to say you’re going to move to another state. You really do need to actually move and become a part of that state.

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Allison Soares

Allison Soares, a renowned tax attorney, excels in representing clients before the IRS, FTB, EDD, and CDTFA. With a Bachelor of Arts in Finance from the University of Wisconsin, Milwaukee, and a transformative teaching stint in Brazil, Allison’s diverse background enriches her legal expertise. She pursued law at St. Thomas University School of Law, Miami, complementing it with an MBA in accounting and forensic accounting. Further honing her skills, she obtained a Master of Laws in Taxation from the University of San Diego School of Law. As an adjunct professor at San Diego State University, Allison imparts her knowledge in tax procedures, practice, and ethics. Her accolades include being named Best of the Bar by the San Diego Business Journal and multiple Super Lawyer recognitions. Committed to community service, she volunteers with Forever Balboa Park and Friends of Balboa Park. Allison’s authoritative contributions in tax law are showcased through her publications and speaking engagements.

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