topic CA part year resident in State tax filing

CA part year resident

kzblewski — Sat, 13 Jun 2020 23:03:41 GMT

My daughter returned to California after living abroad for 5 years. No income has been earned since returning to the US, yet when Turbo Tax enters the foreign earned income into the state form, it comes out that state taxes are due on it. There are no taxes due on the federal form as it is all foreign income exclusion. How do I get the 540NR form to recognize that there is no California income?

Re: CA part year resident

Bsch4477 — Sun, 14 Jun 2020 02:52:52 GMT

See if this helps.

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/does-california-accept-the-foreign-earned-income-exclusion/00/385154/amp

Re: CA part year resident

kzblewski — Sun, 14 Jun 2020 04:03:59 GMT

yeah, I saw that before, and it says:

"As a part-year resident, you pay tax on:

All worldwide income received while a California resident
Income from California sources while you were a nonresident"

There has been no income while a California resident and there was no income from California sources while a nonresident.

But... the forms are still taking the nonresident foreign income and taxing it (taxes were paid on it in the foreign country)

Re: CA part year resident

TomD8 — Sun, 14 Jun 2020 15:21:02 GMT

The question in your daughter's case is whether or not she became a non-resident of California during her absence from the state. If she did, and if she earned no 2019 income after her return to the U.S., she would have no obligation to file a 2019 CA tax return.

CA's rules on determining residency are complex, and you'll have to interpret them for yourself. The rules are detailed in CA Publication 1031. Here's a link to that:

https://www.ftb.ca.gov/forms/2019/2019-1031-publication.pdf