Working in California

[Community Alumni]

The following pertains to working for money not volunteering for an out of state (not a CA resident) worker and not a contractor just an every day John or Jane Doe.

Looking for information of any changes in the California requirement that if you earn income you need to get a CA driver's licence and vehicle registrations. I do know that income is taxable for state income tax and federal.

Looking to see if any new laws or exemptions are out there. I have not found any.

And has anyone done this recently.

I am currently volunteering in California now.

JimR

[Community Alumni]

agesilaus wrote:
I agree that volunteering does not sound like a 'gainful' employment. But Cali, NY and other such states are well known to take the most expansive view possible of your residence status and to pursue people who they believe are residents for taxes. They have been known to take legal measures and people have to hire lawyers to fight them off.

"A special division of the FTB has for years systematically targeted seasonal “part-time” residents for audit (I use the term “part-time” loosely, since we are talking about nonresidents who spend part of the year here, not part-time legal residents per se; but the term has stuck). Though Santa Barbara, Los Angeles and Sonoma counties experience their share of audits, historically the most common casualties are affluent “snowbirds” who own vacation homes in the Palm Springs area as an escape from the winter blasts of the Midwest or northern states. In fact, many of the major cases in residency taxation are eerily similar: they usually involve Midwesterners who own winter vacation homes in Palm Springs and environs. If the FTB finds significant taxable income coupled with meaningful contacts with California (such as a vacation home, business interests or long visits to the state), it can lead to the launch of a full-blown residency audit."
The part time residency trap

Read that article

Once again I urge you to call one or more of the places you are considering and talking to their bookkeeper for a local view of the situation. Are you really expecting to volunteer for more than 180 days?

Very good post and link to information thank you.

I do not plan to stay in CA long enough to become a resident and at this time I do not want to remotely consider earning any income here as I now feel that is to riskey.

Thank You
JimR

[Community Alumni]

.

ooppps

[agesilaus]

I agree that volunteering does not sound like a 'gainful' employment. But Cali, NY and other such states are well known to take the most expansive view possible of your residence status and to pursue people who they believe are residents for taxes. They have been known to take legal measures and people have to hire lawyers to fight them off.

"A special division of the FTB has for years systematically targeted seasonal “part-time” residents for audit (I use the term “part-time” loosely, since we are talking about nonresidents who spend part of the year here, not part-time legal residents per se; but the term has stuck). Though Santa Barbara, Los Angeles and Sonoma counties experience their share of audits, historically the most common casualties are affluent “snowbirds” who own vacation homes in the Palm Springs area as an escape from the winter blasts of the Midwest or northern states. In fact, many of the major cases in residency taxation are eerily similar: they usually involve Midwesterners who own winter vacation homes in Palm Springs and environs. If the FTB finds significant taxable income coupled with meaningful contacts with California (such as a vacation home, business interests or long visits to the state), it can lead to the launch of a full-blown residency audit."
The part time residency trap

Read that article

Once again I urge you to call one or more of the places you are considering and talking to their bookkeeper for a local view of the situation. Are you really expecting to volunteer for more than 180 days?

[Community Alumni]

You are considered a California resident if you are present in this state on more than a temporary or transient basis for 6 months or more in a 12-month period (CVC §516) and/or California is the state where:

You are registered to vote.
You are gainfully employed. Military personnel are not considered gainfully employed in California, even if they also hold a civilian job.
Your place of business is located.
Resident tuition is paid at a public institution of higher education.
Dependents attend a primary or secondary school.
Homeowner's property tax exemption is declared.
Property is leased for use as a residence.
Residence is declared to obtain a license, privilege, or benefit not ordinarily extended to a nonresident.
Your current driver license was issued.
You are determined to be a resident as evidenced by acts, occurrences, or events that indicate presence in the state is more than temporary or transient.

The above is from the California DMV website.
The 2nd line is that I am asking about "gainfully employed".

My understanding of this is that I will not be working for money in California. And I understand anyone doing so would not want to answer.

To bad as I have worked in the states of Iowa, Arizona, Oregon, Kansas and Nevada for pay and was not required to get a vehicle registration in that state to my knowledge.

Thanks for the replies

JimR

[Community Alumni]

nancyjerry wrote:
Ummm, I would check with your accountant. If you are going to register a car and a temp residence there could be HUGE tax consequences esp when dealing with California.

Not registering nor considering it a temp residence. In fact just the word residence could make one subject to the requirement to becoming a resident of CA.

See walks like a duck above

JimR

[Community Alumni]

ItsyRV wrote:

JimR 1 wrote:
I think you are correct in most of what is posted here as far as living in an adjoining state and working in CA, but there was a post I belive on this web forum about someone living in Reno that got ticketed for driving to work in CA. That was posted along time ago so who knows now.

I think the term long time is correct (6 months) and you are considered a resident, even if you are in a comma in the hospital.

I have in the past looked at the residency information on the states web site. There they state that more than one half a year (basically 6 months) or when you earn earned income then a drivers licence and registration is required.

As far as getting mail here that alone would not trigger a residency requirement.

Thanks for the replies

jimR

I called one of my friend who does this and he explained it this way. so long as you are just commuting, there is no requirement to convert to CA licensing or registration. He said that it would be an unworkable nightmare because you'll need to get a CA registration every morning because you work in CA but need to change back to a NV registration each night because you live in NV. Not possible.

There are triggers and these are when most get in trouble or ticketed. The biggest is if you use your personal vehicle in your CA work and stay in CA during your work. This means you may have a pickup you use in your work and crash at a friends house during the week while working, but go back to your state on weekends. The work, live and utilization rule on the vehicle would apply and require CA registration. The living rule may also be triggered as you're spending more days in CA than at home.

The other major one is the walk, talk and sound like a duck requirement. Pretty much if you do anything that makes officials think you're a CA resident, you may have made yourself one without realizing it. Things like applying for state benefits (other than employee interstate transferable benefits), having an official USPS change of Address to CA (unless a temp vacation like mailing), using resident discounts and services, etc etc. It's kinda common sense, but it can be tricky.

Yes i agree with you on this

JimR

[Community Alumni]

guidry wrote:
Register as a Ca resident since you're living and working there. Why take a chance. If you get stopped by a cop expect a ticket otherwise.

This is not an option, to costly and I an not living or working here I am volunteering for USACE.

JimR

[agesilaus]

I believe the magic number is 181 days, whatever you do don't stay past that point or the ill effects mentioned above will kick in. Personally I'd be out of the state weeks before that and be able to prove that I was.

[nancyjerry]

Ummm, I would check with your accountant. If you are going to register a car and a temp residence there could be HUGE tax consequences esp when dealing with California.

[ItsyRV]

JimR 1 wrote:
I think you are correct in most of what is posted here as far as living in an adjoining state and working in CA, but there was a post I belive on this web forum about someone living in Reno that got ticketed for driving to work in CA. That was posted along time ago so who knows now.

I think the term long time is correct (6 months) and you are considered a resident, even if you are in a comma in the hospital.

I have in the past looked at the residency information on the states web site. There they state that more than one half a year (basically 6 months) or when you earn earned income then a drivers licence and registration is required.

As far as getting mail here that alone would not trigger a residency requirement.

Thanks for the replies

jimR

I called one of my friend who does this and he explained it this way. so long as you are just commuting, there is no requirement to convert to CA licensing or registration. He said that it would be an unworkable nightmare because you'll need to get a CA registration every morning because you work in CA but need to change back to a NV registration each night because you live in NV. Not possible.

There are triggers and these are when most get in trouble or ticketed. The biggest is if you use your personal vehicle in your CA work and stay in CA during your work. This means you may have a pickup you use in your work and crash at a friends house during the week while working, but go back to your state on weekends. The work, live and utilization rule on the vehicle would apply and require CA registration. The living rule may also be triggered as you're spending more days in CA than at home.

The other major one is the walk, talk and sound like a duck requirement. Pretty much if you do anything that makes officials think you're a CA resident, you may have made yourself one without realizing it. Things like applying for state benefits (other than employee interstate transferable benefits), having an official USPS change of Address to CA (unless a temp vacation like mailing), using resident discounts and services, etc etc. It's kinda common sense, but it can be tricky.

[guidry]

Register as a Ca resident since you're living and working there. Why take a chance. If you get stopped by a cop expect a ticket otherwise.

[ksg5000]

If your vehicle is licensed/registered in another State and your only in Calif on temporary basis (working or otherwise) it's unlikely you have to register your vehicle. State won't considered you a resident unless your there for prolonged period of time (366 days as I recall). If your just work camping for a few months I would not sweat it.

[Lwiddis]

William Randolph Hearst only stayed less than six months per year until he was really sick...and income taxes were the reason.

[Community Alumni]

ItsyRV wrote:
If you live and reside in a neighboring state but work in CA, so long as you are not using that vehicle as part of your employment (using it for business purposes), you are exempt from registering. I know several who live in AZ and work across the border in California and were told by CA DMV they are exempt so long as they are not making staying in CA a normal part of their life.

If you work in CA and actual reside in CA, or you establish CA as a place of residing (long term RV is included), or you get mail at a CA address, you must get a drivers license and vehicle registration as soon as you start working in the state. I think the key is you are not living or spending nights in CA while you work.

I think you are correct in most of what is posted here as far as living in an adjoining state and working in CA, but there was a post I belive on this web forum about someone living in Reno that got ticketed for driving to work in CA. That was posted along time ago so who knows now.

I think the term long time is correct (6 months) and you are considered a resident, even if you are in a comma in the hospital.

I have in the past looked at the residency information on the states web site. There they state that more than one half a year (basically 6 months) or when you earn earned income then a drivers licence and registration is required.

As far as getting mail here that alone would not trigger a residency requirement.

Thanks for the replies

jimR