I recently moved to CA for work. I was formerly an NV resident. (I would still like to be but I think CA will require me to be a CA resident) . My spouse is an NV resident and will visit CA no more than a few days this year--I will visit NV almost every weekend. My income is earned entirely in CA and her income is earned entirely in NV. We file a joint federal return. I have CA state income taxes withheld from my paycheck.
Even though her income is earned entirely in NV, will CA tax it? Either as income or as community property?
The issue in your situation is community property. Since NV is a community property state, 1/2 of her NV income is attributable to you, and therefore taxable to you as a CA resident. (CA taxes its residents on all income, regardless of source.)
If you're not sure about your CA residency, see this reference on CA's rules for determining residency status: https://www.ftb.ca.gov/forms/2018/18_1031.pdf
Thanks. So, as a hypothetical, if I earned $100,000 in CA-source income as a resident of CA and my wife earned $50,000 of NV-source income and is not a resident of CA, we would file a joint return in California and I would be taxed on $125,000?
Hmmm. That is less than ideal.
Does CA allow pre-tax 401k contributions? I.e., gross income was 100,000 but contributed 10,000 to 401k pre-tax, my taxable income is 90,000? And pre-tax commuter parking expenses?
California taxes are based on the information on your W-2 and your federal return. Your 401K contributions are normally reported in Box 12 of your W-2, with code D, and are pre-tax. The employee 401K contribution limit for 2019 is $19,000, which includes all elective employee salary referrals. Most plans do not permit employee contributions outside of payroll.
Employers can offer a pre-tax commuter parking benefit. See this IRS reference: https://www.irs.gov/government-entities/federal-state-local-governments/qualified-parking-fringe-ben...