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Level 2
March 7, 2025
Question

California tax return for non resident spouse

  • March 7, 2025
  • 1 reply
  • 27 views

Hi,

 

Myself

1. I am US resident as well as resident of California for whole year. 

2. I have my income in US (w2, 1099 and investment income)

 

Spouse:

1. She is foreign national and staying in foreign. 

2. She is student and visited me once for 60 days in 2024

3. She has no income from US sources 

4. She has no income in foreign country as well

 

Federal Return choices:

1. We want to file MFJ

2. I have prepared return and choose mail filing as need to attach W7 for ITIN  and declaration page to treat my spouse as resident

 

Questions for California return:

1. Trubo tax automatically choose 540NR. Why? I am resident and it should choose resident reutrn, right? Is there any mistake I am doing while filing? 

2. Turbo tax has chosen MFJ for California return as well even though I have added no income for spouse. Should it be MFS? 

3. If it need to MFS, how can I make that change? 

4. Do I still need to file paper return for this as well?  

1 reply

DaveF1006
Level 15
March 7, 2025

First of all, if you are using Turbo Tax online, you should be able to file a Ca 540 resident return. The information from your federal return flow to your California return seamlessly. ‌If you chose to treat your wife as a resident for tax filing purposes in the federal return, this will populate into your California return.

 

If you sued the software, you may need to go to the forms mode in your software.  Go to the information worksheet and go to the main form and change the residency to a Form 540.  For some reason, Form 540 NR is always selected by default. 

 

You may file MFJ for both federal and state even if your wife does not have income. Aslo you will need to mail in the return because your wife does not have a ITIN or SSN and you are mailing the W7 with the return. This cannot be filed electronically.

Here is the screenshot on where to change the California state residency if you are using Turbo Tax software rather than the online version.

 

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NeoNapAuthor
Level 2
March 7, 2025

Hi,

 

Thanks for your response. I am using online version.

 

As I mentioned, I choose MFJ on federal return and elected to treat my spouse as resident for full year on federal return.

 

But when I started California return, it automatically chooses CA 540NR. Is that due to my spouse is non resident and I am filing MFJ ?