I am a Washington resident, I do not have any income myself that is subject to California tax. However I received a 1099-misc from an old address that is really for another person (my brother) (old address is parents house). Dealing with this on a fed level is pretty easy (issue 1099 to my brother and note that on fed return), however how do I do it for California. Do I have to file a 540nr with CA showing this? there is no withholding on the 1099 so was it even reported to CA? The tax would be paid either way however I would really rather not file a 540nr for myself if I don't have to
Q. Do I have to file a 540nr with CA showing this?
A. No. CA starts with the federal AGI. Since your Fed AGI does not include the 1099-Misc amount, you have no CA source income to report.
Q. Was it even reported to CA?
A. Probably not. Even if it was, you open a bigger can of worms trying to report it on form 540NR, than just explaining it later if you do get a CA tax inquiry (unlikely).
<<...really for another person (my brother)...>>
Whose SSN is on the 1099-MISC - yours or your brother's? The IRS computers will look for a matching entry on the tax return of whoever's SSN is on the 1099-MISC.
<<..."Nominee recipient for 1099 MISC" "Dealing with this on a fed level is pretty easy (issue 1099 to my brother and note that on fed return)"...>>
How and where did you note that on the federal return? Was the amount in box 3 or box 7? How did this happen (a 1099-Misc for your brother came in your name and SS#)?
The chances of a problem with the CA tax people are minuscule compared to you chances of a problem with the federal IRS.