Gildardo
Level 3

Client was a resident of California and a married taxpayer. He moved to Japan on January 22, 2016 for an undefined time with intentions to coming back to California. Wife moved too but until July 17, 2016. 
Client owns a residence in California and both maintained their California bank accounts and driver’s licenses. During that time they did only one trip back to California from March 11, 2017 to March 20,

2017. It was a personal trip.

I am filling 2016 and 2017 Taxes.

For 2016 it’s my understanding that he doesn't qualify for CA-546 protection so he will pay California income taxes on all his income.

For 2017 it’s my understanding that he qualifies under CA-546 protection after the 547th day. That will be on July 31, 2017, adding the 10 day trip. Is this correct?

And how do you file 2017 with CA 546-day "safe harbor" protection on Proseries? Do I add his income from Jan 1 up to July 31 on Column E of the Sch CA so he pays taxes on that and the rest of the year is

just tax free?

Ouch California taxes.

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