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I work remotely for a company in California, but I'm a Virginia resident 100% of the time. This is my first year working for this company. Last year, I claimed 1 exemption on my VA taxes (myself).

For work they use this online form, but I'm not sure what to put:here is a picture

I think since I'm a Virginia resident, I still need to withhold VA state income tax, so that section is good.

What I don't know is what to put for CA filing status and CA withholding allowance. The options for CA filing status are: Single, Married One Income, Married Dual Income, Head of household, and Do not withhold.

I am single and don't live with any relative

Thanks!

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  • You have to determine if you are required to pay CA state income tax first. As you are receiving income from a California source, you may be. Virginia does not appear to have reciprocity with California.
    – chepner
    Commented Aug 13, 2021 at 15:12

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You really should talk to a tax accountant on this to be sure you do everything to avoid CA taxes.

Even though you work for a CA company, you are not either working or living there, so CA should have no income tax claim on you. That being said, the Calif. Franchise Tax Board is very aggressive in pursuing any and every dollar that they can collect. Even though there is a cost associated with consulting a tax accountant, mistakes which may make you liable for CA taxes can be very expensive indeed.

The CA Franchise Tax Board has this web page which it appears to me to cover your situation:

Partial and Non-Resident Rules

You are a non-resident:

Nonresident

A nonresident is a person who is not a resident of California.

Generally, nonresidents are:

  • Simply passing through
  • Here for a brief rest or vacation
  • Here for a short period of time to complete:
    • A job
    • A transaction
    • Contract work

It also says:

Do I need to file?

As a nonresident, you pay tax on your taxable income from California sources.

Sourced income includes, but is not limited to:

  • Services performed in California
  • Rent from real property located in California
  • The sale or transfer of real California property
  • Income from a California business, trade or profession

Since you are:

  1. Not performing any services IN California
  2. Not receiving rent from a CA property (I assume)
  3. Not selling or transferring CA real estate (I also assume)
  4. Have no income from a CA business, trade, or profession.

Now you might say, "but I work for a CA company." That may be true but it's not your company, at least I assume it's not yours.

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