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> California also requires former residents to pay taxes if they move to another country But so does the federal government, doesn't it?
by jhgb 5y ago
> California also requires former residents to pay taxes if they move to another country
But so does the federal government, doesn't it?
- irjustin 5y agoYes, but it's not really the same. I benefit from being a U.S. citizen, namely passport, so there's at least some justification. Otherwise I'd be stateless, which is a nightmare classification to be. I garner no benefits not being in the state vs another one. I suppose if I care local elections that's... it?
- naturalauction 5y agoBut California doesn’t have a tax treaty with other jurisdictions and doesn’t recognize the foreign earned income exclusion (first 100k is tax free federally). This means that even if you don’t owe anything federally (as you earned less than 100k and/or worked in a country with a tax treaty and can offset all your federal tax liabilities) you will still owe the state of California money.
- xyzzy21 5y agoBTW the Federal exception is impossibly narrow to ever meet the first year you are overseas: a date in February starting overseas is required (it's like 10.5 months WITHIN the calendar tax year - e.g. if you move overseas in March of the year, you SOL on the exemption). Pretty much unlikely you'll qualify the first year. But after should be easy enough.
- junar 5y agoThat's not how the foreign earned income exclusion works. For example, if you meet the 330-day physical presence test using the 12 months between April 1, 2020 and March 31, 2021, you can qualify for a prorated amount of the FEIE. https://www.irs.gov/publications/p54#en_US_2020_publink100047508 https://www.irs.gov/publications/p54#en_US_2020_publink10004... https://www.irs.gov/publications/p54#idm140194641073648 https://www.irs.gov/publications/p54#idm140194641073648