california state tax adjustments 540NR

[coolbean]

Hi,

I have a question about the California Adjustment form.(https://www.ftb.ca.gov/forms/2022/2022-540nr-ca.pdf)

Let's say In 2022 I made $100 in IL and then moved to CA and made $200. My spouse was in IL the entire time and made $300 there so our total w2 is $600. Should 540NR column B Subtractions be $600 and Column C Additions be $200 since the taxable income in CA should be $200?

[MaryK4 · Accepted solution]

Subtractions are income that is not taxable to a California resident such as California lottery winnings and social security benefits. Do not use column B to deduct income that was earned while a nonresident of California or from sources outside of California. 
 

Additional income is income that was not taxed on your federal tax return but is taxable to a California resident, such as foreign income or interest/dividends from non-California municipal bonds.

Column E – Enter all income from all sources while a resident of California and income from California sources while a nonresident.