Residency - Income Tax (Sacramento: rent, how much, landlord)

[intothelight]

Hi All:

I live in Seattle area, and am thinking of spending a few months in California. Probably 5-6 months. I have every intention of moving back to Seattle when I'm done. My work files my taxes in Washington (no income tax). I also do some consulting work for a company based in California. I won't be keeping my residence in Seattle when moving there - and will just rent a different place up in Seattle when I return. Will I be counted as a resident of California and subject to their taxes?

Thanks!

[Majin]

[cb73]

Originally Posted by mdb1986

Hi All:

I live in Seattle area, and am thinking of spending a few months in California. Probably 5-6 months. I have every intention of moving back to Seattle when I'm done. My work files my taxes in Washington (no income tax). I also do some consulting work for a company based in California. I won't be keeping my residence in Seattle when moving there - and will just rent a different place up in Seattle when I return. Will I be counted as a resident of California and subject to their taxes?

Thanks!

Any money earned while in California, is taxable in California.

[intothelight]

Originally Posted by cb73

Any money earned while in California, is taxable in California.

Thanks. Yeah, sort of figured that. Really unfortunate. One of the greatest states in the US is destroyed by government. I'm a refugee in my own country - fleeing from excessive taxation.

[wburg]

Meanwhile, American tax rates are at their lowest point since World War II. We live in a state of 40 million people surrounded by delicate natural resources of extraordinary beauty, and most of that population depends on delicate public infrastructure, from roads to waterways to power systems, and for that stuff to work you have to pay for it. We're a $2 trillion economy and a generator of enormous wealth--our federal tax dollars subsidize many low-population states that don't charge enough taxes to cover their own operation and must go to the federal government, hat in hand, to balance their books. Taking care of a state costs money, just like eating in a restaurant or paying rent to your landlord. If you'd rather freeload, our state is better off without you.

[intothelight]

Originally Posted by wburg

Meanwhile, American tax rates are at their lowest point since World War II. We live in a state of 40 million people surrounded by delicate natural resources of extraordinary beauty, and most of that population depends on delicate public infrastructure, from roads to waterways to power systems, and for that stuff to work you have to pay for it. We're a $2 trillion economy and a generator of enormous wealth--our federal tax dollars subsidize many low-population states that don't charge enough taxes to cover their own operation and must go to the federal government, hat in hand, to balance their books. Taking care of a state costs money, just like eating in a restaurant or paying rent to your landlord. If you'd rather freeload, our state is better off without you.

I respect your opinion. But, the government takes a quarter of my paycheck, right off the top. I get a few dollars back at the end of the year, but not much. If the definition of a freeloader is a person who pays a quarter of their income to Uncle Sam, I shudder to think of your definition of somebody who isn't. What is it - 50%? 75%? We're headed that way.

[ryuns]

Originally Posted by mdb1986

Thanks. Yeah, sort of figured that. Really unfortunate. One of the greatest states in the US is destroyed by government. I'm a refugee in my own country - fleeing from excessive taxation.

Have you even done the math about how much it's going to cost you? It's probably not that much, since it's not all of your income and taxes rates are very progressive here. It's more fun to complain than it is to see how it actually affects you--I make a pretty good living and pay about $2000 a year in state taxes, which is deductible at the federal level. I mean, I'd personally rather keep that money, but such is the life we've made here.

[matryoshka4811]

Originally Posted by wburg

Meanwhile, American tax rates are at their lowest point since World War II. We live in a state of 40 million people surrounded by delicate natural resources of extraordinary beauty, and most of that population depends on delicate public infrastructure, from roads to waterways to power systems, and for that stuff to work you have to pay for it. We're a $2 trillion economy and a generator of enormous wealth--our federal tax dollars subsidize many low-population states that don't charge enough taxes to cover their own operation and must go to the federal government, hat in hand, to balance their books. Taking care of a state costs money, just like eating in a restaurant or paying rent to your landlord. If you'd rather freeload, our state is better off without you.

I second this wholeheartedly. If you're not willing to pay for it, don't come. I'm moving to Sac from KY and all my family wants to talk about it how much more I'll pay in taxes, which from the numbers isn't as bad as they think it is (not that they believe me). But, it's worth it to me to live in such an awesome place. You get what you pay for!

[New2Tn]

To the OP, I moved from Sacramento to Middle Tennessee in 2012. Tennessee like Washington has no State income tax. While preparing my 2012 return I learned quite a bit about how the California FTB (Franchise Tax Board) handles "California based income". I had 4 months of California based income. It's too complicated to explain all the nuances here, but you should consult a good tax expert knowlegable in your circumstance.

You can also do some of your own research on the FTB website https://www.ftb.ca.gov/individuals/fileRtn/index.shtml

To wburg, thank you for spreading the word about the Great State of California. Apparently a lot of people agree with you. The official State of California population estimates show explosive growth. http://tinyurl.com/o3yb3mo Be sure to look at the official charts and graphs provided by the State. As you read those stats, ask yourself how many of the new residents are going to be tax payers, and how many will be tax takers. I'm not saying I have the answer, I'm saying it's a scary question to ask when you're talking about that much growth.

Meanwhile I continue to be amazed at the lack of traffic on 4 lane highways in southern middle Tennesse. Let's see, no traffic, no pot holes, no smog, no trash on the highways, mowed medians on the Interstate, and all of that with a State budget surplus. Oh and the next time you walk into a California DMV think about this. https://news.tn.gov/node/11068

[wburg]

Originally Posted by mdb1986

I respect your opinion. But, the government takes a quarter of my paycheck, right off the top. I get a few dollars back at the end of the year, but not much. If the definition of a freeloader is a person who pays a quarter of their income to Uncle Sam, I shudder to think of your definition of somebody who isn't. What is it - 50%? 75%? We're headed that way.

Actually, no, it's headed the other direction. Today's top federal tax rate is less than 40%. Through most of the 1940s and 1950s, it was 91%. So celebrate--taxes are going down!

My definition of "freeloader" is someone who wants to work in California, taking advantage of our $2 trillion economy, driving on our roads and otherwise clogging up our infrastructure, but doesn't want to pay 8-9% of the salary they earn in our state to pay for their own upkeep. If you want to do business in California, follow the rules.

Washington doesn't have income tax--but you do have business taxes, excise taxes, and higher property taxes, and other taxes to keep the state afloat. So it's not as though Washington's government comes without a price tag, and they, like California, pay more to the feds than they receive, subsidizing poorer states--we just charge for different things.