Am I required to pay California state taxes while living in Italy on military assignment?

Forum|Forum|6 years ago
June 6, 2019
1 reply
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I'm getting ready to file my taxes, but my wife gave me her W2 from her government job that she got last year here in Italy, they deducted Federal Tax but they didn't deduct CA state taxes all year which is our home of residence. My W2 shows that I properly paid my taxes both Federal and State.

Is there any exemption or anything that says we don't have to file state taxes while living overseas on military assignment?

TomD8

Employee

Yes, there is. A military member who is out of California under PCS orders is considered a CA non-resident for tax purposes, and is subject to tax only on CA-source income. An example of California-source income would be rental income from a property located in California. The same rule applies to the spouse of a military member who leaves the state because of his/her spouse's PCS orders.

Bottom line: if you and your wife have no CA-source income, you are exempt from CA state income tax.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.