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Level 1
posted Jun 1, 2019 12:55:21 PM

In 2018 my employer was in California but I lived in Tennessee. Should I be taxed on my income on my California return?

California gov website says: Nonresidents of California - Taxed only on income from California sources. On CA540NR line 1, there are amounts in boxes A C and D but box E says zero, so it's showing a full refund of all of my taxes. Is this correct? It sounds like I should be taxed.

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1 Best answer
Level 3
Jun 1, 2019 12:55:25 PM

No, if you have not actually physically worked in California you should not be taxed by CA on your income. You should be getting a full refund of any taxes you paid to CA UNLESS you physically worked there for a part of the year.  Then it would be prorated based on time spent working in CA. 

3 Replies
Level 3
Jun 1, 2019 12:55:21 PM

You may also want to have your employer change the state of withholdings.

Level 1
Jun 1, 2019 12:55:23 PM

Thank you! I wasn't in California at all in 2018, nor was my husband. And good idea about the withholdings.

Level 3
Jun 1, 2019 12:55:25 PM

No, if you have not actually physically worked in California you should not be taxed by CA on your income. You should be getting a full refund of any taxes you paid to CA UNLESS you physically worked there for a part of the year.  Then it would be prorated based on time spent working in CA.