Received a W2 and 1099 Misc for a class action settlement from different state. Do I need to file taxes for 2 states?

[kavuri_s]

Hello,

I am a resident of NC. I received a W2 (for CA, amount <$10) and 1099-Misc for a gross settlement amount. 

Please advise if I need to file taxes for 2 states (NC and CA)?

Thanks in advance!

[MayaD · Accepted solution]

What was the total income from CA sources (W-2 + 1099-MISC)?

Filing CA non-resident return depends on how much was the income received from CA sources, your filing status and number of dependents. 

As a nonresident, you pay tax on your taxable income from California sources. If your income is more than the amount shown in any of the tables in the link below, you need to file a tax return.

Part-year resident and nonresident

[kavuri_s]

@MayaD Thanks for your response. 

Total income from CA sources (W-2 + 1099-MISC) is $20 (6.5 + 13.5).

[MayaD]

@kavuri_s

You're welcome!! 

If that's the only CA source income then you don't need to file CA return.

[MrSFromBand]

I am in a similar situation. But I have questions. In the link provided it talks about “If your income is more than the amount shown in any of the tables in the link below, you need to file a tax return.”

I make more than the amount in the total worldwide income table, but my CA amount was less than $700. Do I need to file in CA as well as my home state?

[DavidD66]

No,  if your California Gross Income is only $700 you do not need to file a California Non-Resident tax return.  For more information see Do I Have to File in California Nonresident or Part-Year Resident Booklet