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Returning Member
posted Feb 14, 2023 1:16:17 PM

Filing 2nd State return

Do I need to file CA 540 NR if income is less $3000?? I don't want to pay for 2nd State if not needed.

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3 Replies
Expert Alumni
Feb 14, 2023 2:20:26 PM

It depends.  As a non-resident of CA, you must pay tax on income from CA sources which include:

  • Income from services performed in CA
  • Rent collected from real property located in CA
  • Income from a CA business, trade, or profession
  • Income from the sale/transfer of real property located in CA

To determine if you have a filing requirement as a non-resident of CA, you have to look at all your income. If the $3,000 of income you mentioned above is your total gross (worldwide) income, then you are not required to file a CA non-resident tax return. 

 

If the $3,000 mentioned above is just your CA adjusted gross income, you need to look at the table on the State of CA, Franchise Tax Board web-site for Part-year resident and nonresident filing requirements to determine if you need to file the non-resident return based on your total gross income (worldwide).

Returning Member
Mar 15, 2023 9:16:33 AM

Our FEDERAL gross income including that second state  is $ 1531.00   Our taxable total income on fed 1040 with deductions is 0.

California income total $2,775   before  exemptions or standard  deduction which is more than income   a0

 

THANK you for replying!!    I really hate to pay for 2nd state on TTax.

 

M

Expert Alumni
Mar 15, 2023 3:38:10 PM

If your gross income is $1,531 then you would not have to file a federal return (unless you have self-employment income) and you will not have to file a California return.