State tax filing

ali21471 · ‎July 20, 2023

CA nonresident and remote work

I worked remotely as a 1099 in CA for 6 months from my home in Nevada. I never set foot in CA. The company I worked for withheld $13,044. I was assured by them that I would get that all back. My withholding was reported on a CA Form 592-B. Now that my taxes are complete my CA refund is only $3541. To the best of my knowledge I've made no mistakes and noted where asked that I was in NV the entire year. Why am I not getting all my withholding back? Thanks in advance for the help.

posted

‎March 2, 2022 5:47 AM

last updated ‎March 02, 2022 5:47 AM

You were misinformed. California will tax that income.

If all your work is actually (physically) performed in your state of residency and you never physically work in any other state, then you would have NO "other state income. "Currently, the only exception to that is California. Due to a 2019 court ruling in CA, if you are a sole proprietor and you provide services to a client located in CA, that income is taxable by CA - even if you never set foot in California."

Will the answer given also apply to someone with a Green Card who lives/performs service for a CA based company as an independent contractor? Should they receive a 1099?

Thank you much for your thoughts in advance!