14. Phil is a California resident. He agreed to work overseas for one year. He returned to California after the employment contract expired and stayed for three months. Then, he signed another contract with the same employer to work overseas for another year. Which of the following is true regarding Phil’s California residency status?
A. He cannot be considered a nonresident under the safe harbor rule B. He can be considered a nonresident under the safe harbor rule C. He can combine the days he was overseas from the two separate contracts D. He cannot be considered a nonresident because the principal purpose of his absence from California is to avoid personal income tax
15. Even if the taxpayer does not meet the California basic filing requirements, he or she should still file a tax return in order to get a refund if which of the following apply?
A. California state income tax was withheld from his or her pay B. He or she had income from an S corporation, partnership, or LLC C. He or she made California estimated tax payments D. All of the above
Q No 14
Answer - A
Safe harbor is available for certain individuals leaving California under employment-related contracts. The safe harbor provides that an individual domiciled in California who is outside California under an employment-related contract for an uninterrupted period of at least 546 consecutive days will be considered a nonresident. Also Return visit to California for that do not exceed a total of 45 days during any taxable year covered by the employment contract are considered temporary
Phil cannot be considered a nonresident under the safe harbor rule because his absence from California for employment reasons was not for an uninterrupted period of at least 546 consecutive days.He cannot combine the days as he was overseas from the two separate contracts also his stay was more than 45 days.
Qno 15
Answer- D
Even if the taxpayer does not meet the basic filing requirements, he should still file a tax return in order to get a refund of - California state income tax was withheld from your pay, California real estate sale, or income from an S corporation, partnership, or LLC and he made California estimated tax payments.
So answer is D
14. Phil is a California resident. He agreed to work overseas for one year. He returned...
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