Ask Experts Questions for FREE Help !
Ask
    rickway's Avatar
    rickway Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Mar 10, 2008, 12:22 AM
    Foreign earned income has my head spinning
    I worked from January 1, 2006 until May 9, 2007 in the United Kingdom.

    2006 tax filing was simple since I didn't have any US-based income and was a "resident" of Ohio, which doesn't tax foreign income.

    2007 on the other hand is raising some questions.

    I moved from London to California in May 2007 after earning roughly $20,000 in the UK in calendar year 2007. I did not earn any money from my UK job after returning to the US in May. I'm doing well with the federal taxes - filled out the 2555, and my 1040 looks correct.

    The question is about my California state taxes. It seems that they want me to add my foreign earned income to the income I earned as a California resident when calculating my total taxable income. Can they really tax me for income I earned when California was not even a twinkle in my eye? To repeat, I had no association whatsoever with the state of California until May 10, 2007.

    Thanks for any guidance you can provide.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Apr 28, 2008, 12:13 PM
    If you file as a part-year resident of California (Form 540NR), you can then segregate the UK income from the California-sourced income and pay taxes ONLY on the California income.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Foreign Earned Income [ 7 Answers ]

I am currently working in Germany. I am a US citizen, but my wife is a German national. She is not a registered alien, but she does posses a ITIN for tax purposes. We are filing a joint tax return. Because she does not work for a U. S. entity she does not pay U.S. taxes and therefore does not...

Tax on Foreign Earned Income - NRO [ 5 Answers ]

I am a resident alien and I have a NRO certificate of deposit in India. If I understand correctly I need to report interest income earned in India also. 30% tax is already being deducted at source by the Indian bank on the interest I earn in India. Do I have to pay taxes in US too ? Or can...

Taxes on Foreign Earned Income [ 4 Answers ]

If I am an employee of a foreign company (I am a US citizen residing in that country). I pay taxes in the foreign country. They do not issue a w-2 or 1099 because they are not a US company. Am I required to include this income in my US tax forms and if so where and is it subject to US income tax?

Foreign earned income [ 3 Answers ]

I have a couple of questions, my husband is a resident of Georgia, he works for a contractor in California, where he has an apartment, he deploys overseas where he works for at least three months at a time. He worked overseas last year for a total of about eight months. His income is being taxed...

State Taxes on Foreign Earned Income [ 5 Answers ]

My husband and I live and work in the Caribbean. We are US citizens and maintain a permanent home in Georgia (where we lived prior to moving to the Caribbean). Our federal tax return allows an income and expenses exemption, up to a specified amount. Apparently, Georgia doesn't allow this...

View more questions Search