# How to get Refund for California Withholding Tax for Expat after Business Trip to LA



## pullhairout (Aug 6, 2017)

Hi,

I'm a US citizen living and working (freelance) in Germany for many years. 
When I make a business trip to California, the company withholds CA state income tax for the amount I earned while there. I have not yet been able to get a refund, since the description of the forms is so complicated that I can't figure it out.

I sent in a form 540NR along with a copy of my federal tax returns, but eventually received the answer that it was incorrect. 
Does anyone know if I need to also fill out the "Schedule CA (540NR)" form?
If so, which fields? I don't have any financial connections to the US, no bank accounts, no social security, etc. I have lived here for 35 years.

So basically, I never need to actually pay any US taxes, since I already pay them in Germany and can deduct that. But what are the magic fields that need to be filled out to get a refund from California? It is nearly impossible to get someone on the phone there.

Thanks!


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## Bevdeforges (Nov 16, 2007)

When you say that the company is withholding CA state income tax, is "the company" your client or a portage company you work with? It sounds as if that's where the mistake is being made - but it's hard to tell without a bit more information.


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## pullhairout (Aug 6, 2017)

The US company is my client (I am a software consultant for them and normally work from home in Germany). And they claim that California requires them to withhold state income tax on the amount earned while physically present in the state.


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## Bevdeforges (Nov 16, 2007)

Were you at any point resident in California? But never mind - you may want to contact the California Taxpayer Advocate to see what needs to be done.

I had an issue with California several years after I moved to Germany and the Taxpayer Advocate service was very helpful in getting me straightened out.


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## pullhairout (Aug 6, 2017)

I lived there about 35 years ago. I'll try the California Taxpayer Advocate.
Thanks


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## Nononymous (Jul 12, 2011)

I suspect the company might be paranoid and dead wrong, but good luck convincing them otherwise. 

Anecdotal evidence - consulting work done from Canada for a company in California, including a short business trip. Didn't give them an SSN, nothing withheld, they simply paid the invoice for the hours billed. (Probably not relevant but I said nothing to them about my US citizenship, since I don't file US tax returns.)


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## NickZ (Jun 26, 2009)

Employment income is always taxed at the location. 

But in the US it's worse because of the state issue.

https://en.wikipedia.org/wiki/Jock_tax

Ignore the name.


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## Bevdeforges (Nov 16, 2007)

And California can be particularly "sticky" in these matters.


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## Nononymous (Jul 12, 2011)

NickZ said:


> Employment income is always taxed at the location.
> 
> But in the US it's worse because of the state issue.


Hasn't been in my case, as a consultant. Submit an invoice and get paid the full amount, no accounting for time in the US on business trips. Maybe I've just been lucky, or the amounts are smaller and I'm not a pro athlete, or it's freelance not salary.


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