Hello.

I now live and work in Thailand. I plan on visiting my parents in
California for about 1 month out of the year. I qualify for the
federal foreign income tax exclusion (330/365 days away, tax home in
Thailand, perform services in Thailand).

Let me provide some of the relevant information:

-I grew up in California but went abroad soon after leaving college.
In 2003 I was in California for about 3 months and in 2004 I was there
for about 3 months as well. But I should only be there for 1 month per
year for the indefinite future (ensuring my federal foreign tax
exclusion).

-I use my parent's address as my American mailing address, I receive
important financial information there (online brokerages, Washington
Mutual Bank, etc.), and they handle checks that arrive for my business
(but most payments are completed online electronically).

-I have a California Driver's license. I'm registered to vote in
California. I could cancel my license and voter registration without
affecting my life much. I have a California seller's permit for sales
tax collection for my business as they said it's required since I have
somewhat of an office in San Diego (my parents handle some business
mail).

-I have a loan for going to UC Berkeley as a California resident. I
don't think this figures in any where but there might be a problem if
I were no longer a resident.

I was reading the California law regarding residence and they said the
main criterion was about where you had the strongest ties. I think
it's clear my strongest ties are here in Thailand where my entire life
is focused -- I rent a condo here, my long time girlfriend is here, I
live here for most of the year, I work here, I speak Thai, all my
possesions are here.

If somebody could help me figure out what if anything I have to pay
California for my situation please help.

Thanks,
Daniel

Dear dancalio,

The answer depends on whether you have any income from California sources.

For years in which you did not live in California at all, you must
file a Nonresident or Part-Year Resident Income Tax Return if you were
single and your income from California sources was at least $12,346.

California Franchise Tax Board: FAQ: "I did not live in California. Do
I have to file a return?"
http://www.ftb.ca.gov/individuals/faq/ivr/210.html

If you did live in California for part of the year, you owe taxes on
income you earned from any source, whether within or outside
California, during that time.

California Franchise Tax Board: FAQ: "I lived in California for part
of the year. Do I have to file a return?"
http://www.ftb.ca.gov/individuals/faq/ivr/209.html

In a nutshell, you don't have to file a California tax return if (a)
you do not earn an income from California sources and (b) you do not
earn income from any source while living in California.

Your place of birth, American mailing address, and driver's license
have no bearing on your tax status. Your driver's license in
particular might come in handy in future, so you should hang onto it
as long as you can. Since your loan was issued in the past, when you
were indeed a California student, you have nothing to worry about on
that score. You can and must repay the loan from anywhere in the
world.

Regards,

leapinglizard