So you think you’re not a California resident subject to CA income tax? CA FTB may want to check on that...
The Franchise Tax Board (FTB) conducts a residency audit to determine whether a taxpayer is:
• A resident of California – Taxed on income from all sources, including income from sources outside of
• A nonresident of California – Taxed only on income from California sources.
• A part-year resident – Taxed on all income received while a resident and only on income from California
sources while a nonresident.
Our purpose is to verify the correct amount of tax in a fair and impartial manner. We do this in accordance with our Mission, Values, and Statement of Principles of Tax Administration (FTB 7899A).
Who is a California resident?
A resident is any individual who is:
• In California for other than a temporary or
• Domiciled in California, but outside California for
a temporary or transitory purpose.
A resident who is outside California for a temporary or transitory purpose remains a resident. For more information about residency, get our publication, Guidelines for Determining Resident Status (FTB Pub. 1031), at www.ftb.ca.gov.
How does a residency audit differ from other audits?
While most of our audits focus on specific items of deductions, income, or credits, a residency audit focuses on the claimed state of residence. The audit may also focus on the source of specific items of income, deductions, or credits.
What kind of documentation will I be expected to provide?
Documentation requested in a residency audit may include the following:
• Real property
• Purchase/sale/lease information • Escrow documents
• Insurance records
• Personal property
• Vehicle/vessel registration
• Business activity information
• Travel logs or personal calendars • Employment contracts
• Financial records
• Cancelled checks/statements
• Credit card receipts/statements
• Personal records and/or information • Voter registration
For more information click here: https://www.ftb.ca.gov/forms/misc/1015R.pdf