Stranded in U.S. due to Covid-19 and Non-resident Status

Technical topics regarding tax preparation.
#1
Keyad22  
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Bay Area, California
October 15 is gone. The first time I efiled all the tax returns by October 14. I saw a long line outside the post office nearby. I decided to detour that street twice that day. Not a nice person, Ha-ha!

Okay, now I am back to work. I am doing research on the following issues and need your help.

For those aliens stranded in U.S. due to Covid-19 lockdown, will their non-resident status to be challenged?

For those aliens stranded in California due to Covid-19 lockdown, will their non-resident status of California to be challenged? Are there any safe harbor rules?

More and more people here in CA worked remotely out of states or moved to other states. We saw some neighbors two streets away from us moved to Texas in July but they still work for IT companies in the Bay Area. From the employees' side, they are now physically located outside CA. Should their compensation be taxed as CA source of income? From employer's side, should employer still deduct CA income tax withholding and CA SDI from those out-of-state employees' gross pay?

How about ISO, NSO, IPO, tender offer for the employee stocks vested, exercised or disposed for those employees moving out of California? What’s the source of income rule applied here? What are the guidelines?

Timing along is not everything but it is important to tax planning.

Any contribution is appreciated!
Thank you in advance.
 

#2
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The Office
Keyad22 wrote:More and more people here in CA worked remotely out of states or moved to other states. We saw some neighbors two streets away from us moved to Texas in July but they still work for IT companies in the Bay Area. From the employees' side, they are now physically located outside CA. Should their compensation be taxed as CA source of income?


Absent specific guidance from the FTB I think you'd just apply the normal rules to determine tax residency. It's primarily facts and circumstances but there is a safe harbor.
 


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