California help needed, please

[Catherine]

T/p is a dual citizen who, in 2022, was employed for five months by a MA university to conduct research. The uni paid salary and withheld MA income tax on the MA source income.  (T/p was 5 months in the US, back home to South America where additional-but-foreign income was earned, then back again in the last few days of 2022 to move in to a more-permanent situation in a west coast non-CA state, but earned no money in those last couple of days.)

Per requirements of the contract with the university, t/p did the research in California, and stayed in CA to do that work (mid-Jan to mid-May, 2022). No CA tax was withheld. T/p stayed in a short-term rental (AirBNB-esque, possibly actual AirBNB; I'd have to ask).  

Is this taxpayer considered to have CA-taxable income? 

Is this taxpayer considered to be a part-year resident of CA?

And I thought the complications of the weird South American CDs the t/p holds were the worst of this return. At least for 2023 this person will be a full-time US resident in ONE state.

[BulldogTom]

Catherine,

I think the TP would have CA source income and required to file a 540NR.   Where are you showing him domiciled during that period?   You may be able to wipe a big portion of the income from CA because if he was "traveling for business at a temporary worksite" and returned to his domicile, he can take, for CA purposes, the unreimbursed travel expenses (Air BnB, meals, transportation, etc).   CA never conformed to the 2017 tax law changes related to unreimbursed employee expenses.

Take a look at how he was paid.   If any portion was considered a scholarship, it would be excluded to the extent of tuition, fees and materials.

Tom
Longview, TX

[Catherine]

29 minutes ago, BulldogTom said:

Where are you showing him domiciled during that period?

There's the $64,000 question. Client traveled from South American domicile to California, to do research for a MA university as the MA-university employee, from mid-Jan to mid-May. Returned to South America in May. No US domicile for the year. Expenses were on a per diem; not taxable, has receipts that meet-or-exceed 100% of living expenses. 

Client has worked for same uni in prior years, for the same 5 month stints, as part-time MA resident living/working (teaching) in MA. This year's twist was research in CA instead of teaching in MA.