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Does California tax annuity income from California Public Employees Retirement system for nonresidents?
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Does California tax annuity income from California Public Employees Retirement system for nonresidents?
If you are no longer a resident of CA, then your CALPERS annuity is not subject to CA tax.
Effective for retirement income received after December 31, 1995, federal law prohibits any state from taxing certain retirement income (mainly pension income) unless you are resident of, or domiciled in, that state.
For example, if you receive a pension from your former California employer and you now reside in New Mexico, California may not tax your retirement income. Because you are now a New Mexico resident, your retirement income is taxable in New Mexico.
If CALPERS is withholding CA tax, notify them to stop doing so. You can file a non-resident CA tax return for a refund of any tax withheld.
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Does California tax annuity income from California Public Employees Retirement system for nonresidents?
If you are no longer a resident of CA, then your CALPERS annuity is not subject to CA tax.
Effective for retirement income received after December 31, 1995, federal law prohibits any state from taxing certain retirement income (mainly pension income) unless you are resident of, or domiciled in, that state.
For example, if you receive a pension from your former California employer and you now reside in New Mexico, California may not tax your retirement income. Because you are now a New Mexico resident, your retirement income is taxable in New Mexico.
If CALPERS is withholding CA tax, notify them to stop doing so. You can file a non-resident CA tax return for a refund of any tax withheld.