<p>US citizens are required to file with the IRS regardless of where on the planet (or off, I suppose) they reside and how long they’ve been living there. In this situation, typically the citizen or family is also filing in their country of residence, and since the IRS gives credit for foreign taxes paid if the foreign country has a tax treaty with the US, citizens in this situation normally don’t have to send any money to the IRS. It’s just a paperwork burden in this case.</p>
<p>I don’t know whether US citizens abroad are also required to file state taxes. This may well vary depending on the circumstances, the state, and so on.</p>
<p>I’m mostly posting to point out that there’s nothing unusual about the fact that the family has been filing US income tax returns while living in India since the OP mentions US citizenship. However I’m skeptical that this alone establishes residency, since it’s required for all non-resident citizens. There would have to be something special about their California connection, as described by calmom.</p>
<p>California has two categories for filing - Resident and Non-Resident. Residents have to pay state income taxes on everything they earn; Non-Residents need to pay taxes on California source income. </p>
<p>A person who has left the state remains a California resident if they are:</p>
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<p>This is a pretty standard legal definition. </p>
<p>We don’t know enough about the OP’s situation to know whether or not his family fits this definition. </p>
<p>My advice stands: the OP should address his questions to the appropriate officials at the universities that he is applying to. I don’t have a clue what they will say, but there’s enough there to be worth asking about. (It would be really dumb not to ask because some strangers on the internet told him it won’t work. The worst that can happen from asking is confirmation that the strangers on the internet are correct. The best that can happen is that he may learn that he does qualify, or he may learn what he or his family need to do to ensure that he will qualify. )</p>
<p>Its more than a year since your last post Sahil. What was the final out come of your interaction with the Cal schools? Do share this info for the benefit of other members.</p>