State tax filing

If you have a deferred comp plan that is not taxable to a non-resident, you can change your California income to $0 on your nonresident return and get back your withholding.

I suggest double-checking with your former employer first before making any changes.

California does not tax a private deferred compensation plan program or arrangement described in IRC Section 3121(v)(2)(C) only if the income is either of the following:

1. Part of a series of substantially equal periodic payments (not less frequently than annually) made over the life or life expectancy of the participant or those of the participant and the designated beneficiary or a period of not less than 10 years.

2. A payment received after termination of employment under a plan program or arrangement maintained solely to provide retirement benefits for employees in excess of the limitations on contributions or benefits imposed by the IRC.

See page 6 of FTB Publication 1005.

To adjust your California, you will see a section for “Nonresident Adjustments.”

On the screen “Did you earn all of your income in California?” select No, I earned all or some of the $xxx in a different state.

In the box How much of the $xxx from federal Form(s) W-2 did you earn in California? Change the number to $0. Your California refund will equal your withholding.