ULPT: Tax avoidance FL/CA
Posted by Due-Yesterday-6718@reddit | UnethicalLifeProTips | View on Reddit | 3 comments
Hi guys. Please forgive me if this is illegal - definitely let me know, bc that’s not what I’m trying to do here.
I was born and raised in FL. Moved to CA for a job, laid off (surviving off unemployment + Medi-Cal), now back to being employed as a FT remote worker.
I technically live between FL and CA. I have a CA drivers license/registration/insurance, but have no lease under my name. Because of the sudden shift in employment I left my car w my bf in CA, but technically live w my parents in FL. However, I go back and forth a lot. My company is based in CA and I had given them my bf’s address, and I don’t have health insurance via my company (it’s a startup, and yes I’m trying to figure this out - currently in the process of leaving Medi-Cal and finding a new insurance, which my company agreed to pay back whatever I spend on doctors visits). I’m thinking of possibly changing my address to my FL w my company and getting some sort of “remote worker” insurance, but my billing addresses and anything else I can think of is still my FL address.
So my question is - can I just claim I live/work in Florida on my taxes? What should I consider? Does it make sense for my situation?
Again, if this is illegal please let me know. I’m only trying to take advantage of my unique living situation, not commit tax fraud.
ongoldenwaves@reddit
Nope. California FTA are aggressive MF's.
I know people with multi million dollar homes and cars in Florida. Never ever lived in California. Ever. But once in a while the company sends the out there for a week or two and taxes are demanded on those wages.
California employs several mechanisms to identify and potentially recover taxes from individuals who work between states. This is especially relevant in cases of remote workers with connections to California. Here's how California tracks individuals working between states for tax recovery:
BrilliantDishevelled@reddit
You need to clearly leave CA. The car staying there, giving your company a CA address, spending substantial time in CA, all that puts you at risk of CA holding you responsible for taxes. Make a clean break.
MdmeGreyface@reddit
This is the way, from someone who moved from CA to LA, and had to pay taxes to both states for a bit because of the entanglement.