Confusion in filing Schedule X for 2021 California state tax amendment

[anuragsrm]

Hi,

     I was a California non resident (Massachusetts resident) working remotely from Massachusetts for a California company for the whole year of 2021. When I filed my 2021 returns I mistakenly included my wages as part of CA tax return and hence had to pay $12738 to CA state (my CA withholding was 0 for 2021). I'm now amending the 2021 CA state tax return and have some confusion in how to fill Schedule X (see attached image). I'm expecting a refund of the $12738 I had incorrectly paid to CA. How should lines 1 - 11 be filed correctly to reflect this scenario ?

• Should line 9 be line 6 - line 3 ? Should this be the same as line 11 ($12738) ? I only expect to be paid back the $12738 that I had incorrectly paid CA, so I believe line 11 should be $12738.
• Should line 2 be $0, since I did not get any refund with my original 2021 CA state tax return (rather I paid $12738).
• Why is line 6 adding 4 (refund expected) + 5 (tax paid with original tax return) ?

[MonikaK1]

The line items on your CA Schedule X appear correct per the screenshot you shared.

The instructions for Line 11 state: 

If you are entitled to a refund greater than the amount claimed or allowed on your original tax return, your Schedule X should show only the additional amount due to you. This amount will be refunded separately from the amount allowed on your original tax return. The FTB will figure any interest owed to you and include it in your refund.

Generally, you do not have to pay California nonresident taxes on income earned while working remotely from another state for a California company, provided you are never physically present in California while working. California taxes nonresidents only on income sourced from within the state, which is defined by where the work is performed.

As a nonresident, you pay tax on your taxable income from California sources.

Sourced income includes, but is not limited to:

• Services performed in California
• Rent from real property located in California
• The sale or transfer of real California property
• Income from a California business, trade or profession

Massachusetts residents are generally allowed a nonrefundable credit for income taxes paid to another state or jurisdiction on income that is also taxed by Massachusetts. This credit prevents double taxation and is claimed by completing Schedule OJC (Income Tax Paid to Other Jurisdictions) with the Massachusetts tax return.

If you claimed the credit on your Massachusetts return for taxes paid to California, and didn't report your wages for the remote job on your Massachusetts return, you will need to amend it as well.

[anuragsrm]

Thanks for the reply. So it is ok for line 9 & 11 to be different as seen in the schedule x snapshot ?

[DawnC]

Yes, those amounts can be different.