In California, anyone who is not a resident of the state is considered a nonresident for tax purposes. Part year residency refers to a person who resided in California for part of the year, and remained a nonresident for the remainder of the year.

Nonresidents of California are taxed according to income tax regulations on income derived from California sources. Part year residents are subject to tax on all income received while they are a resident, and then only income received from sources within the state while they are considered nonresidents.

In order to determine where income is sourced from, you only need to consider where the work was performed for which monies have been paid. When you are paid wages and salaries for services rendered in the state of California, it doesn’t matter where you or the employer are located upon payment.

Income from California sources include any money earned from business, trade, or professional services in California. If a nonresident works both in California and in another state, and the income generated within California is separate from other monies earned, only the portion earned in-state is subject to California Tax.