Are you a California resident? Some taxpayers are unsure whether they should file their California state income taxes as residents or nonresidents. The state and federal definitions of residency are different.

A California resident is an individual who is in California for other than temporary reasons. A resident is an individual who is working, living, retiring or staying in California for a long period. If you stay in California for more than nine months, FTB will presume that you are a resident.

A resident is also an individual whose permanent home is in California but who is outside of California for a temporary purpose. For example, an individual goes on vacation in another state or works there temporarily. The individual still maintains residency in California and intends to return.

A temporary stay means that the individual is just visiting California. He or she may be here for a vacation, or completing a business transaction. But there is no intention to stay.

Residency is significant because:

Residents of California are taxed on all income, including income from sources outside California
Nonresidents are taxed only on income from California sources; and
Part-year residents are taxed on all income while a resident and only on income from California sources while a nonresident.
For more information, refer to FTB Publication 1031, Guidelines for Determining Resident Status.