Quarterly Taxes

Hi, the answer depends on how much you earn total for the year and/or how much you earn during the time you work in CA. The time spent in CA will not determine if you must file a tax return or pay income taxes

Scenario below is for a CA nonresident, single, under 65 with no dependents:

• You are required to file a CA return if you worldwide income (all income) is over a certain threshold ($21,561 for 2023) or
• You are required to file a CA return if your CA sourced income is above a certain threshold ($17,249 for 2023)

So, if your total income for the year is $30000 and you only earned $1000 in CA, you will be required to file a CA return because your total income is above $21,561. 

The link below provides requirements to file for different filing status

https://www.ftb.ca.gov/file/personal/residency-status/part-year-and-nonresident.html

CA will typically require you to pay income taxes if you live or have income sourced in CA. If taxed by CA, then you will apply for "credit for taxes paid to another state" on your resident state tax return. If your resident state does not have an income tax, CA will keep the taxes owed to CA. 

Thank you for joining us today!

Hi, travel reimbursement received for temporary assignment may or may not be taxable depending on if you are a W2 or Independent Contractor and on how you report your expenses to your employer or client that has reimbursed you. 

Two types of reimbursement plans:

Accountable - required to provide adequate records of expenses.

Nonaccountable - not required to provide any records of expenses

W2 Contractor 

If you are a W2 contractor and are reimbursed under an accountable plan, the reimbursement would not be added to your income. If your are on a nonaccountable plan, your employer should add the reimbursement to your income and you would deduct your expenses on your tax return, if you qualify (see note below).

NOTE: The miscellaneous itemized deduction for unreimbursed employee expenses was suspended from 2018 to 2025 by the Tax Cuts and Jobs Act of 2017. However, reservists, performing artists, fee-basis government, disabled workers with impairment-related work expenses, and educators can still deduct certain job-related expenses that aren’t reimbursed.

https://turbotax.intuit.com/tax-tips/jobs-and-career/employees-can-deduct-workplace-expenses/L58LFjAPa

Independent Contractors

If you are on an accountable plan where you provide your client/employer with adequate accounting of your expenses, the travel reimbursement would not be taxable and is not included in income.

However, if you are on a nonaccountable plan and you are not required to provide adequate accounting of your expenses, then you must add the reimbursement to your income and deduct expenses incurred on your tax return.

Remember, you must keep adequate records of these expenses whether or not you account to your client for these expenses.

The link below provides additional information on adequate recordkeeping and how to report your expenses, if applicable. 

https://www.irs.gov/publications/p463#en_US_2023_publink100034110:~:text=an%20accountable%20plan.-,Rules%20for%20Independent%20Contractors%20and%20Clients,-This%20section%20provides