How the State of California taxes Foreign Earned Income

  • Unfortunently, no. There is relief available through the Safe Harbor Rule, however.

  • If you plan to be working abroad for 546 consecutive days, then you may qualify as a non-resident and all that foreign-earned income will not be taxed by the State of Californa. There are some caveats, however.

    1. You must not be in California for more than 45 days in the calendar year.

    2. Intangible income is less than $200,000 in any taxable year you work abroad.

    3. The principal purpose of the absence from California is not to avoid income taxes.