Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
percy122873
New Member

Income was made in Arizona while a resident of Arizona. How do I take it off of California state return?

 
1 Best answer

Accepted Solutions
TerryA
Level 7

Income was made in Arizona while a resident of Arizona. How do I take it off of California state return?

The Calif part-year/nonresident Form 540NR doesn't work like that. It computes your income and tax as if you were a resident the entire year, then computes a net tax rate by dividing the total tax by total taxable income. Your California-source taxable income is then multiplied by that net tax rate to determine your California tax. You can see this on Form 540NR lines 31-37.

So you do report everything but towards the end of the interview in the Nonresident Adjustments section is where you allocate the California-source income which is multiplied by the net tax rate. See Form 540NR, lines 31 - 42 and Schedule CA(540NR). The amount you enter for the Calif-source income portion of the total income shown on the left will not include income you earned while a AZ resident. It's those Calif-source $$ that you are taxed on - not the whole thing.


View solution in original post

1 Reply
TerryA
Level 7

Income was made in Arizona while a resident of Arizona. How do I take it off of California state return?

The Calif part-year/nonresident Form 540NR doesn't work like that. It computes your income and tax as if you were a resident the entire year, then computes a net tax rate by dividing the total tax by total taxable income. Your California-source taxable income is then multiplied by that net tax rate to determine your California tax. You can see this on Form 540NR lines 31-37.

So you do report everything but towards the end of the interview in the Nonresident Adjustments section is where you allocate the California-source income which is multiplied by the net tax rate. See Form 540NR, lines 31 - 42 and Schedule CA(540NR). The amount you enter for the Calif-source income portion of the total income shown on the left will not include income you earned while a AZ resident. It's those Calif-source $$ that you are taxed on - not the whole thing.


Dynamic AdsDynamic Ads
Privacy Settings
v