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Why did I get a request for tax return California

Did you also hear CA now wants to follow people 5 years after they leave the state for income they make elsewhere??? It's a measure, not something they've passed yet. They have gotten insane. 

 

I wish there were a threshold they didn't care about. For ex... the year they went after me I had made a decent amount of money they considered 'sourced' even though I worked in GA the entire time and the client flew to me. (An individual, not even a company.) That year was 25k. But this year, we made $2500 from a client we had  no idea was from CA b/c we were booked by a GA person, did a video shoot in GA but apparently the person footing the bill was from CA. When we got paid the 'product maker' we did a video shoot for turns out was in CA. We were soooooo mad. But we spent that entire $2500 on additional labor that helped us with the shoot and rentals, then bought equipment needed to do future jobs for them so eventually this year we'll end up in profits. But last year our profit is zero. I don't feel like spending money on Turbo Tax s/w for CA, showing them all our books, and paying to file just to prove we owe zero. I'd like to think $2500 will go unnoticed. I get why $25000 raised a brow. Instead the only threshold they offer is grand total income from all sources. How about a low end you can make from CA without bothering them with paperwork?? So obnoxious. I left that state for a reason. 

 

Why did I get a request for tax return California

Orresident ... sorry I missed your Nov. note.

 

I was on a screen on FTB site that said request/demand for tax return. And I put in the case # on my letter. And it showed me the words..

Our records show this matter is resolved. This may be because we located your tax return or determined you have no file requirement. 

 

(I had sent in the first 4 pages of Turbo Tax showing I owed zero. They must have accepted it.  It showed zero b/c I said NO to CA sourced income. They could have disagreed but I guess they let it go.) 

Why did I get a request for tax return California

By any chance, do you know, if one can run into similar situation with Ohio?

Living and working in NY, received 1099-NEC (independent contractor) from an Ohio company.

Thanks.

KrisD15
Expert Alumni

Why did I get a request for tax return California

No, for 2020 Ohio does not tax out-of-state remote workers.

 

Who must file Ohio return.

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Why did I get a request for tax return California

thanks

Why did I get a request for tax return California

It says right in the link that you posted that they do...this thread is about 1099 - not w2.  It says

"Every Ohio resident and every part-year resident is subject to the Ohio income tax. Every nonresident having Ohio-sourced income must also file. Examples of Ohio-sourced income include, but are not limited to, the following:

  • Wages earned in Ohio (note: see "Exception" below);
  • Ohio lottery winnings;
  • All Ohio casino gaming winnings;
  • Income or gain from Ohio property;
  • Income or gain from a sole proprietorship doing business in Ohio; AND
  • Income or gain from a pass-through entity doing business in Ohio."

That would be a yes.

 

TomD8
Level 15

Why did I get a request for tax return California

@txorpayer --

 

A non-resident of Ohio whose remote work is carried on entirely outside Ohio is not earning income "in" Ohio.

 

@KrisD15 's answer is correct.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

Why did I get a request for tax return California

I also wondered about Ohio's use of the word IN. Does it really mean IN? 

 

CA is more specific to say if you made it whether or not you ever stepped foot in their state... you owe them anyway. 

TomD8
Level 15

Why did I get a request for tax return California

"CA is more specific to say if you made it whether or not you ever stepped foot in their state... you owe them anyway." 

 

CA's rule applies only to non-resident sole proprietors providing services to CA-based clients.  It does not apply to non-resident W-2 employees working remotely outside CA.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

Why did I get a request for tax return California

That is nicely true about W2 as I teach for a school out there that pays GA state taxes on my behalf. And it's never been a problem. Only my 1099 work has been the issue. 

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