If you worked in California til you retire and move to Nevada, can California charge you income tax?

Question

My sister & husband live in Nevada for 17 years. They got a letter from California say they owed taxes from when they worked in California over 17 years ago and they filed their taxes while there. Now they live in Nevada and have just found out that California has put a lean on their home in Nevada for $24000. They have not gotten an answer yet as to what can be done. One legal says show us proof you have lived in Nevada 17 years and CA can't do this. Then another one says yes CA can do this. They are in their 70's and want to move to a smaller house or a townhouse, because of aging, but can't sell the house because of the lean. Any answers out there....help please.

Answer 1

They need to consult a tax attorney. It doesn't sound right if they have been gone for 17 years unless their retirement income comes from CA. CA has some strange laws.

Answer 2

that your relatives moved from CA to NV does not sever CA's ability to tax income earned in CA.

I'd say the issue here is the 17 years delay, if I'm reading your question correctly.

IF the income in question was paid in CA 17 or more years ago, they may be able to have this squashed because it is well past the time limit for CA audit their tax returns from way back then. {Not being an attorney or tax practicioner who does work on CA tax law, I'm not clear -- google this -- CA tax laws are online.}

HOWEVER, if the income is more recent [from a CA based pension, etc.], THEN CA may have it correct -- income earned in CA is taxable by CA no matter which state you live in. Special CA tax form 540-NR is used by non-residents to calculate their CA income tax due.

Answer 3

It sounds like either they failed to pay CA tax when they did live there, or CA thinks they lived there when they didn't. Or...did they live in NV but work in CA?