Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
keith_houghton
New Member

What does this mean: "Income earned (before expenses) for services you performed, reported on federal form 1099?" I'm trying to figure out if I have to file a CA return.

CA is saying I might have to file a return with them even though I'm a non-resident not earning income from CA sources.  Filling out the questionnaire asks me about income earned for services reported on a 1099 form.  I only have 1099 for dividends and not services, so I entered "0" but the questionnaire says it has to be above that number, so I'm completely lost on what it is asking for.
7 Replies
Critter-3
Level 15

What does this mean: "Income earned (before expenses) for services you performed, reported on federal form 1099?" I'm trying to figure out if I have to file a CA return.

You are posting from the SE program so CA is asking for the SE income reported on a Sch C if you received income from clients in CA.   Even if they did not issue a 1099-nec that is what the program is referring to.

keith_houghton
New Member

What does this mean: "Income earned (before expenses) for services you performed, reported on federal form 1099?" I'm trying to figure out if I have to file a CA return.

Thank you.  I know that I don't have the qualifying income, but CA's system wouldn't allow me to input "0" as a value.  Once I left it blank, the form was submitted.  Now I just have to wait 21 days to see if they agree.  I don't mind California but this is one of the few reasons, I want to have nothing to do with the state.  They commonly go after non-resident military members for money.  We have to prove that we are not residents and don't have any qualifying income that they can tax.  Last time, while on deployment, they put a $900 lean against my bank account because they claimed I owed them that amount in taxes.  

Critter-3
Level 15

What does this mean: "Income earned (before expenses) for services you performed, reported on federal form 1099?" I'm trying to figure out if I have to file a CA return.

Try to change your SLR to the state you are now if you  are allowed and if they treat  military members more favorably.

 

 

There's no place like home, but when a member of the military is asked "What is your home of record (HOR)?" sometimes the answer isn't as simple as you might expect.  In fact, determining "home of record" can be quite confusing. Easily mistaken for the term "state of legal residence (SLR)," there are important differences for members of the military to understand so they can determine which term is most relevant for their current situation.

 

It's important to note that these two terms should not be used interchangeably. HOR is defined as the state where you first enlisted or from where you received a commission from one of the branches of armed services. HOR determines certain benefits, such as travel allowance back to your state when you leave the military.

 

SLR is considered your permanent home, the state where you intend to live after you leave the military. This state is considered your residency for state income tax purposes. In addition, state of legal record is used to determine qualification for in-state tuition rates, eligibility to vote for federal and state elections and for a will to be probated.

But neither is automatically changed when you're assigned to a duty station in a different state. There are differences to note when making the change for each.

 

Changing Home of Record or State of Legal Residence 
There are important points to keep in mind before you change your HOR or SLR. For example, you may change your HOR only for the following reasons: to correct an error, after a break in military service, when a new enlistment contract is signed, or if this status was erroneously or fraudulently recorded initially.

On the other hand, SLR may be changed with your approval at any time during your military career. To change the state of legal residence, you should submit paperwork (DD Form 2058 or State of Legal Residence certificate) to your finance officer. Once submitted and approved, SLR status can be changed, but may need validation or proof such as a written letter stating your position, a driver's license, voter registration or a vehicle registration for a new state.
 
Varying State Rules on Military Pay
Military pay is taxable in your state of legal residence, while other pay, such as income from a second job, is taxable in the state where you are working. Only your state of legal residence may tax your military pay, thanks to the Service members Civil Relief Act, which prevents a state from taxing military pay just because a service member lives within the borders of that state. However, any non-military pay earned in the state you're stationed in is subject to income tax requirement in the state where it was earned.

 

Additionally, SLR rules are different for your spouse if you both live in two different states. Unless he or she is also an active-duty member of the military, your spouse is usually considered a resident of the state where you are stationed for state income tax purposes. Meaning, if you're married to a nonmilitary spouse and you file a joint return, it may become a bit complex. 

                                               

 

 

 

 

khoughton
Returning Member

What does this mean: "Income earned (before expenses) for services you performed, reported on federal form 1099?" I'm trying to figure out if I have to file a CA return.

Thanks for the response, but this is not the issue.  I've been serving in the military for 19 years and I'm well versed in Home of Record versus residency.  While I've been stationed in California three different times, I have never been a resident of the state.  My state of residency is Oregon.  This hasn't stopped California from coming after me for taxes twice because I filed a federal return with a California address.  It's almost like they are targeting the military which doesn't seem legal, but we're still stuck proving we don't owe the state money.  My question was seeking info that California was looking for in their form to see if I'm required to file.  I entered "0" in the fields but it kept telling me that the number had to be greater than "0" yet I didn't have any of the income that it was asking about.  I cleared the fields and left them blank and the system took it.  So now I wait up to 21 days to see if California still thinks I owe money.

Critter-3
Level 15

What does this mean: "Income earned (before expenses) for services you performed, reported on federal form 1099?" I'm trying to figure out if I have to file a CA return.

If you have no CA sourced income then you should not be filing a CA return at all  ... so now all you can do is wait and fight it if needed.   

 

If you do not file a CA return and  they send you a "you didn't file a CA return"  letter then your  LES should be enough to shut them down.  Ask someone at your JAG office for assistance if needed.  

khoughton
Returning Member

What does this mean: "Income earned (before expenses) for services you performed, reported on federal form 1099?" I'm trying to figure out if I have to file a CA return.

Thanks.  That's the plan, except LESs aren't maintained electronically for that long and I don't commonly download them unless I need it for something.  My W2 for 2019 shows Oregon as my state of residence so hopefully, that is enough.  I opted to fill out their form online thinking it would be quicker but there was no option for uploading documents, so I either have to wait or give them a call.  At least this time I am able to deal with it before they put a lien against my bank account.  The state placed a lien against me while I was deployed in 2013.

AriG
New Member

What does this mean: "Income earned (before expenses) for services you performed, reported on federal form 1099?" I'm trying to figure out if I have to file a CA return.

Hello, 

 

I am also a non-CA resident who received this letter. I was confused by the same issue and couldn't determine why the form wouldn't accept '0' as an appropriate response. Your question, and subsequent answer, helped me submit the online questionnaire and I want to thank you helping me solve this issue. 

 

Now to wait 21 days...

Best,

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.48m
Members

2.6m
Discussions

Manage cookies
v