Earned from CA source as if CA nonresident for full year? Earned while a CA resident? Earned from CA source while a CA nonresident? What do I fill for above lines?

[viktoriyab11 · Accepted solution]

Appear like you had income from California, and these questions aim to establish your resident status. Depend on your residency status you will be taxed accordingly.

Please, follow the link for more information about Residency staus How California taxes residents, nonresidents, and part-year residents  status and  https://www.ftb.ca.gov/individuals/fileRtn/Nonresidents-Part-Year-Residents.shtml#residency_status

Hope its help.

[TerryA]

Those sound like questions on the Calif part-year/nonresident Schedule D Worksheet and are a little difficult to understand. I'll try to unravel them:

Gain/loss from Calif sources as if a nonresident for full year - this is as if you lived in, say Vermont, all year and you sold real estate located in Calif. Enter the gain or loss on dispositions like that (property is in Calif).

Gain/loss during the portion of the year you were a Calif resident - If you were a Calif resident during any of 2017 enter all gains/losses earned during that time - it doesn't matter where the property is. If never a Calif resident in 2017, skip it (if it wants an entry, enter 0).

Earned from CA source while a CA nonresident - this is the opposite of the one just above: Enter all gains/losses from Calif sources (i.e. real estate located there) during the time you didn't live in Calif. If you were a full-year nonresident then this is the same number as the first question above.

[K20212]

can someone explain this further using an example? Lets say i moved out of CA to VT in May 2021, and sold 2 stocks this year:

• Stock A: i sold a stock that i owned in Feb  2021 $80 gain 
• Stock B: Sold a stock i owned in Nov 2021 while in VT for a $100 gain

For earned from CA source, is it: 

• Stock A: $80 earned from CA source if non resident for entire year, $80 earned when CA resident, $0 earned from CA source if non resident
• Stock B: $0 earned from CA source if non resident for entire year, $0 earned when CA resident, $0 earned from CA source if non resident

[MarilynG1]

Allocate your Capital Gains by the % of the year you lived in each state on your Part-Year Returns to both California and Vermont.

For example, if you had a total of $180 in Capital Gains reported on your Federal return, and you lived 6 months in California and 6 months in Vermont, you can allocate 50% of Capital Gains amount to each state.

Click this link for more info on Allocating Income as a Part-Year Resident. 

[tbudd]

@TerryA , so if I stayed in the CA for say the period Jan-Apr(end) and in India for the rest of year (remaining part of Apr to end of year) in 2021,

for the column B, I should enter zero. Right?

[josalvatorre]

How does "California Source" apply to stocks?

In the real estate example, it's possible to earn money in California even though you're in another state. Therefore, you could consider that a Californian source of income.

However, stocks aren't tied to an area. Let's say that I suffered a -$16 loss on a sale outside CA. How would I answer "Earned/Rec'd from CA Source as if Nonresident for Full Year"? Shouldn't I put $0 because, if I were a non-resident, then the sell would be a non-CA source?

[RobertB4444]

No, you should put the full amount of the loss or gain because if you were a California non-resident the whole year that is how much you would have lost wherever you were.

[tbudd]

The question is really confusing. Is there a need to amend the return if 0 is entered for this field for Part Year CA residents?

[josalvatorre]

@RobertB4444  So in the following example of a -$16 loss outside CA, I would put:

• 0
• Not Taxable to CA
• 0
• 0

[MarilynG]

Yes, that would be correct.  The Capital Loss on a Stock Sale had nothing to do with California-source income. 

@josalvatorre
 

[NL20203]

so what if I moved from TX to CA in June, and I sold stocks Aug for $5 gain. How do I answer these - is the below correct?

Earned/Rec'd from CA Source as if Nonresident for Full Year	0
Allocation Type	RES - Earned/Rec'd While a CA Resident
Earned/Rec'd While a CA Resident	5
Earned/Rec'd from CA Source While a CA Nonresident	0

[MayaD]

That is correct. You sold some stocks right after you moved to CA. Allocate the gain to CA

You received that income while you were CA resident.

For more information on how to allocate your income: How do I allocate (split) income for a part-year state return?

Edited[02/28/2023, 06/26 AM, PST]