CA Tax Updates 

Married Filing Separately (MFS) can sometimes lower taxes, protect refunds, or reduce student loan payments, even though most couples save more by filing jointly. Learn when MFS makes sense, such as with high medical expenses, AMT concerns, or in community property states like California. Compare Married Filing Jointly vs. Separately to find the best tax strategy for your financial situation.

Becoming a California nonresident requires more than changing your address—it means relocating your life. Sell your California home, establish a residence and work in a new state, and cut social and business ties. Risk factors include children in California schools, voting locally, or frequently staying in the state. If you report high income after moving, the FTB will likely audit, reviewing days spent, bank accounts, property, and even social media. A clean break is essential to secure tax savings.

California residency audits focus on whether a taxpayer truly left the state or still maintains strong ties such as a home, vehicle registration, or frequent visits. To defend nonresident status, taxpayers must show a clear break by moving daily life—home, license, banking, and family—to the new state. Without clear proof, the cost of defending an audit can outweigh any tax savings

California’s passthrough entity elective tax offers a credit but requires careful planning around elections, payments, and carryovers; credits can offset estimated taxes (not mental health tax), have a five-year carryover, and misapplied payments can be reallocated through FTB with a written request.