I need to file a CA return only to get withheld taxes returned. My wife and I are full-year non-residents. She receives W-2 income as well as some interest from a California firm. The W-2 income does not work done in CA so there should be no tax due to California; just a refund of the withheld taxes. No other income is CA income. (We pay taxes on that income in our now home state.)
Having just gone through the CA return step-by-step the final result is us owing a relatively small amount tax to CA--that's clearly incorrect; we should be getting 100% of the withheld taxes refunded. Is the step-by-step process somehow treating the income not earned in CA as CA earned income?
One odd place the return is balking is on the Sch. D worksheet for non- and part-year residents. We have a net capital loss of $3000. The form starts with a large loss, which of course is limited to $3000. Then it asks questions designed to show how much was CA source. None of it is a CA loss but the form won't accept my answers. And it gives no clue for what the answers should on the worksheet should be.
I've been filing a very similar return for the past 2 years since leaving CA. Have not had a problem with this before. Any help would be appreciated.
