Does a Nevada resident pay California taxes when they work and live in Nevada?

Question

A major company in the United States has a big branch office in California. They posted for a position that required the applicant to be a Nevada resident. A friend of mine who lives in Reno applied and got the job. He has been a Nevada resident for 30 years; there is no Nevada State tax. He is doing Nevada specific work. He follows applicable Nevada rules for hourly employees regarding straight time and overtime. He doesn't travel out of Nevada. He told me this company deducted California State taxes from his paycheck. Is that legal? If not, can I advise my friend to get an exemption from someplace?

Answer 1

I work in WV and pay VA taxes, as I'm in school and a permanent resident of VA.

I believe things such as school are an exemption.

Dunno bout CA.

Answer 2

If you ONLY live and work in Nevada, you would only have Nevada source wages, therefore no California wages. If they withheld California tax from his paycheck, he needs to either contact his payroll department to get it cleared up (and get the California wages and withholding corrected) or he will need to file a California nonresident return showing zero wages, but showing the tax withholding.

Answer 3

If he is not working in CA, no CA tax is due and CA taxes should NOT have been withheld. He can file a CA return claiming zero CA income and listing the CA tax withheld. He will get a full refund of the CA taxes withheld.

He should simply tell his employer to stop withholding CA taxes from his pay. Where the company is based is not a factor, it's where the work is performed.

Answer 4

CA (like most states) taxes the world wide income of its residents. If you were legally a resident of CA while working in NV, then you owe CA state income tax for your NV earnings.