California Tax FAQs for New Residents

If you are a new resident of California then you maymatures.
want to learn about its tax structure. These are some4. In the case of Community property, in which
basic checklist points for new residents:category of the income bracket do you fit in?
. Is it essential to file a return in California State?Community property taxes affect the income figure
. Are you granted Other State Income Tax Credit?you have specified in the state or federal returns. It
. Are you acquainted with the influence of Communitymay be an advantage, if both the spouses file their
Property Laws on your taxes?returns separately.
. In the case of Community property, in which category5. Have you sold your residential property?
of the income bracket do you fit in?If you have sold your residential property, it is beneficial
. Have you sold your residential property?if you dont mention it in your federal tax return, unless
. Have you claimed the relocation deduction?the profit exceeds your exclusion amount.
. Are you just a visitor or planning to settle down?6. Have you claimed the relocation deduction?
. Are you a worker from other country?If you are relocating for a job, then you may seek this
1. Are you required to file a return in California State?deduction. However, to fall under this category, your
You may need to pay tax half yearly of full term. But,workplace must be at least 50 miles farther from your
before filing the return you have to check your incomehome.
criteria and the amount of tax payable in the Non7. Are you just a visitor or planning to settle down?
Resident California Tax Booklet. If you dont fall underIf you are a resident of the United States and paying
the taxable category, it is better you file the return sotaxes and simply visiting California, then you dont have
as to benefit from a refund, if California State Incometo pay the income tax. But, if you buy any product in
Tax was withheld from your pay.the state, you are liable to pay sales or other local tax.
2. Are you granted Other State Income Tax Credit?8. Are you a worker from other country?
Your income may be taxable in two or more states. IfIf you are from another country and working in the
you have paid the tax in the state you were working inUnited States, then you may need to acquire a sailing
and continue to do so in California, then you may beor departure permit before leaving the country.
entitled for a tax credit.Sales Tax- If you are not a resident of California, but
3. Are you acquainted with the influence of Communityyou trade and work in the state, then you must file for
Property Laws on your taxes?California Income Tax Return. You may also have to
As California is a community property state, all thepay Personal Tax, which may be deducted from your
property owned by a couple is considered communityincome.
property. Each couple owns an equal share in theFederal tax- If you visiting California for a business
community property. Community property ceases todeal, you may have to file the Federal Income Tax
exist on the demise of either spouse. Communitywith the Internal Revenue Service.
property tax also ends when the decree of dissolution