@DavidD66Hi David, thanks you for getting back to me. It's my fault that I left an important history in my previous message.
We actually had the same issue last year (2022 tax year), our CPA filed 540NR for us. We ended up paying a small amount of tax to CA for the recharacterization portion (the money was recharacterized from Roth to Traditional, and eventually backdoor to Roth IRA). We didn't understand why because there was no tax withheld from CA, nor we made any income in CA. The contribution to IRA was after-tax money. But the CPA included it in the form Column E "CA Amounts".
We no longer use this CPA for other reasons so this year we are filing our own tax.
Given that we had this experience and reference from last year, is it still safe to say that we don't need to file 540NR because there is no ta withheld by CA?
Thank you and appreciate your feedback!
