What is the criteria for residence and domicile for taxation?

Residence and domicile are two different criteria when it comes to taxation in the state of California. Domicile is the place where a person permanently resides and intends to remain, while residence is the place of physical presence where a person lives. In terms of taxation, California follows the concept of domicile. Domicile is determined by factors such as whether an individual has legal ties to the state, how long they have lived there, and whether or not they intend to remain. As long as an individual has the intention of remaining in California for an indefinite period of time, then he or she is considered a domiciliary of the state. On the other hand, residence is determined by how much time an individual spends in the state. California considers an individual to be a resident if they spend more than nine months of the year living in the state, or if they are registered to vote in the state. In either scenario, all individuals are taxed on the income they earn in the state. This means that an individual that is a resident of California but has a domicile in another state will still be required to pay taxes on income earned in California. However, they may be eligible to receive a credit or exemption on taxes paid in their home state.

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What is the criteria for residence and domicile for taxation?

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