THAT's a sweet deal. Doesn't cali have the highest income taxes?? Can you live in Nevada and work in cali and still pay nothing??
Better be careful with that approach. Texas baseball and football players get taxed in California when they play here...... Are you sure you are different? My understanding is that if you are a resident of another state and work in the State of California, all wages earned in California are subject to state tax.
A LOT OF MISS INFORMATION ON THIS BOARD. State taxes are tricky. State laws are different, so what is the right law in one state can be wrong in the next. As an formerly practicing California CPA i can only speak to california rules. If you work in california and live in another state california will tax you only on your earning in california. If you live in california, california will tax u on your total income no matter were u earned it. Even income that the US does not tax do to foreign treaties can be tax in CAlifornia.
But aren't any earnings, subject to CA state income tax, based on the AGI off of your 1040? Wouldn't that eliminate foreign income available for state taxation?
Yes California starts with Federal AGI, then adds and subtracts differences in law to get to state taxable income. California makes its own tax law, it does not conform to federal law. There are hundreds of differences between California and federal law.
I make no comparison between Fed and State tax schemes. My point is that most state tax laws start with the AGI and don't add income already subtracted from it, otherwise what's the point of using the AGI in the first place?