Should I file as CA 540 or 540NR? Am military & home of record, domicile, and residency are all CA, but was stationed in MD on PCS in 2017. TT wants to select 540NR.

[2017ttq]

Within TT, when I choose Legal Residence CA and Stationed MD, and yes to PCS outside CA, it recommends CA Form 540NR.  But keep seeing conflicting information on TT forum answers that I should be filing as CA Form 540.  If I force TT to select CA Form540, it then doesn't exclude military wages.

[TerryA · Accepted solution]

When military member's HoR is Calif and stationed outside Calif on PCS, they become Calif nonresidents for tax purposes. Unless you had some non-military income in MD (second job there, or whatever) then you have no state tax liability at all - to any state. MD can't tax your military pay because your HoR is Calif, and Calif can't tax it because you are a Calif nonresident (for tax purposes).

See California's publication 1032, Tax Information for Military Personnel, here
https://www.ftb.ca.gov/forms/2017/17_1032.pdf
You can find your situation in one of the examples listed in there.

[2017ttq]

Thanks. Ended up reviewing FTB Pub 1032 Section D examples of resident status and also Section F income subject to CA tax for nonresident military personnel with CA domicile.

[Karen1209]

The state residency information is populated from your My Info input.  As active duty military, you are considered working in another state while living in CA.

Follow these steps:

• While in your return, click My Info on the left menu.
• Click Edit to the right of your name.
• When asked if you lived in another state, click No (see attachment).

[2017ttq]

Already did that.