- Enlisted to Active duty in California many years ago and have been active duty since.
- Years later while I was stationed in a different state (with no income tax) I became a resident of that state. Got a drivers license there, voting, vehicle plates etc.. I did everything required to become a resident, but I did not actually buy property.
- Years later got stationed in California but have continued to maintain my legal residency in that other state.
- I am considering retiring in California in a few years. I may buy a home here in California soon.
If I buy a house before I retire, will California make me become a California state resident and pay state income tax prior for the years prior to retirement?
Could they potentially make me pay the state income taxes for the years I was previously living here because they could argue I planned to retire here all along?
My tax professional is very knowledgeable about military tax issues and I has advised me I will only become a California resident upon retirement in California and will have to pay state income state going forward, but would like to hear from anyone with similar experiences.
Thank you
If I buy a home in California will, they make me pay state income tax?
byu/advca20 inMilitaryFinance
Posted by advca20
2 Comments
> will California make me become a California state resident
That’s not really California’s choice to make….that’s up to the service member. That said, the more actions you take to indicate you are a CA resident (such as changing your license, buying a house, registering to vote in CA, etc.), the easier it is for them to fight your decision (to be a non-resident) in court if they wanted to (but they probably wouldn’t bother).
Lots of AD members own houses in CA while maintaining residency in other states.
If you leave your residence elsewhere you’ll be fine. When I owned a home there I would get a letter from the tax franchise board every year asking why I paid property tax but not income tax, and I’d just send them an LES showing Florida as my legal state of residence and they were cool with it.
I will say, I left my cars tagged in FL as well. If you buy a car in CA I don’t know if that changes anything but if a house doesn’t I don’t see why you wouldn’t still be fine.
This is not financial advice.