We moved out of CA in 2015. I work freelance for many clients all over, including my home state of GA, as of 2015. That year we were able to do both state taxes and it nicely divided what we did in each state so we could pay accordingly.
Since that time, in 2016 as full time GA residents, I've worked on projects for clients from all over, besides, CA, including NC, TN, VA, and Arizona. Never in my life have I been asked to file tax returns as a non resident in any of those states just because I got a 1099 from a person or company in that state. Only CA.
I just received a letter from FTB State of CA asking for my 2017 because I have a 1099 from a person in CA. We paid GA taxes on this income already, as we do with all my 1099 income because I work from home and do all work in GA. Why would I also need to go through with filing CA taxes? If I were to follow that lead... I would have had to file taxes in 5 states that year just simply based on 1099s. Is this just CA? Is it because I used to live there or would all who got a 1099 from CA have gotten this notice including those who were never residents? I think in 2016 I made bout $150 from CA but on work done in GA. I guess they didn't notice? 🙂
It says if my hubby and I made over 34k we have to file (and that includes non CA sources. Which of course combined we did. But my CA amount isn't over 34k. Just "gross" of course, which means everyone would have to file for 2 adults income combined, ya know? But that doesn't seem to matter my CA amount is below.
There's also a question I'm not sure how to answer. It asked what gross income is from all sources. But is there a line item in TT that shows that? I only see AGI. And when I start looking at our grand totals on 1040 that year the 1099 line item shows the net after business write offs. How do I get a really strong accurate number when the paperwork is all over the place including a 3000 loss shown on that first page for a stock? Do we deduct that from the grand total?
Do I have to buy CA 2017 software, install it and pay for that plus filing fees? Just to find out if they'll double tax me? I've never heard of paying taxes in a state when you do the work in another. Even my teaching work for Universities that pay through W2 take out GA taxes on my behalf, not their home state taxes. I work for one in CA and one in VA. And both process my GA taxes for me b/c I do all online teaching from GA.
Any advice is greatly appreciated. They have given me a very tight deadline to actually fill out the questionnaire and the CA tax forms.
