# California Expat in Hong Kong



## ExpatQuestion (Apr 23, 2015)

I am originally from California and have been working in Hong Kong for 3 years. I have filed my US tax return every year. There were no tax in the federal return because of the foreign income exclusion. But I have been told that California does not allow the foreign income exclusion so my working income in Hong KOng has to be taxed by the State of California if I am considered a California resident. So I am wondering if I am still a California resident or not. I have been away for more than 3 years. I do not keep a home in California now. The home that I owned and lived at before I moved to Hong Kong had been rented out. Every time when I go back for visit, I just stay in my parents home. I have only gone back two times after I left and both time it was 2-3 weeks staying there to visit my parents only. I plan to continue to work in Hong Kong and I have no plan to move back to California in the near future. So can they still argue that I am a California resident?


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## Bevdeforges (Nov 16, 2007)

California is one of the "stickier" states when it comes to residence. But generally speaking, you probably only need to file a NR return with them for the rental income on the place you're renting out. 

I'd go that way until they come back and tell you any different. 
Cheers,
Bev


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## BBCWatcher (Dec 28, 2012)

Refer to California FTB Publication 1031 to determine your California residency status.


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## DavidMcKeegan (Aug 27, 2012)

Yes unfortunately California is one of the worst states for expats as their rules for who they deem a resident are so loose. If you still own the home and are receiving rental income from it, you are probably stuck filing that CA return. If you ever sell the home though, a good idea would be to set yourself up in another (more favorable) state such as Nevada or Florida. 

Even something as simple as getting a P.O Box in another state and moving bank accounts, etc over there can help to prove that you have no intention of returning to California.

I hope this helps and good luck!


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