LifeinAsia - 5:23 pm on Mar 27, 2006 (gmt 0) As you may or may not be aware, as a CA resident, CA taxes ALL your income, even if it's not earned in CA. Nevada is also community property, can't remember about Wyoming.
I'm thinking of moving my official residence to Wyoming or some other no-tax state but really live here in CA. Since I'm internet based and have no store or "presence" in CA I think I should be OK.
Think again! CA is seriously cracking down on people trying to do exactly that. Will you have a phone in California? A home in California? Utility bills in CA? A car registered in CA? A bank account in CA? Any one of those would be enough justification to consider you a CA resident, especially when you really ARE a CA resident.
The only possible complication that I can forsee is if my wife gets a job in CA. Then we'd have to file separate income taxes for this to work and I don't know if that would throw up a red flag.
Filing separately won't help you (as CA is a community property state, half of all of her stuff is your and half of all of your stuff is hers, including income and deductions) and you'll only complicate your life by having to do more than twice as much work at tax time. Filing separately can also prevent you from taking some deductions/credits.
As you may or may not be aware, as a CA resident, CA taxes ALL your income, even if it's not earned in CA.
Nevada is also community property, can't remember about Wyoming.