Question

Which of the following is not a factor when determining residency?

State that issued taxpayer's driver's license.

Amount of time spent in California versus elsewhere.

Where the taxpayer will pay the least taxes.

Location of principal residence.

Answer 1

Option 3) Where the taxpayer will pay the least taxes is not the factor when determining residency.

Explanation : As per closest connection test, the weightiest factors for determining residency are as follows :

1) Amount of time spend in California versus amount of time spend outside California.

2) Location of your spouse / registered domestic partner and children

3) Location of your principal residence

4) State that issued your driving license

5) State where your vehicles are registered

6) State in which you maintain professional license

7) Origination place of your financial transactions.

8) State where you registered your vote.