turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Sole Proprietor with CA source income as CA nonresident

I am a sole proprietor residing in Oregon throughout all of 2023. I completed my federal + OR state returns in TT and then realized based on jurisdiction laws, I am supposed to be filing a CA return for the services I provided to CA-based clients (remotely). I cannot figure out how to actually apportion my entered income in TT between CA & OR, but perhaps it's because I need to delete all my OR data and restart with CA first? I updated my Personal Info section to show income from another state, but don't see any obvious places to provide my income breakdown in the State Return section. Thanks in advance!

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
MayaD
Expert Alumni

Sole Proprietor with CA source income as CA nonresident

You don't need to delete your OR return. There are some states where you prepare your resident state return first and then prepare the nonresident return and Oregon is one of those. 

How do I file a nonresident state return?

Income from services provided in CA is taxable on your OR and CA returns. However, CA allows non-resident who are residents of Arizona (AZ), Guam (GU), Oregon (OR), and Virginia (VA) to claim Other State Tax Credit on schedule S if they had income that was taxed by California and their states. The credit will offset the taxes paid to the other state, so you are not paying taxes twice. To check if you qualify for the credit, visit Instructions for Schedule S.

 

  California source income for independent contractors/sole proprietors is determined by looking to where the benefit of the service is received by the customer.

 

Only CA source income is taxable on your CA return. The income generated from business you conduct within California is California source-income. 

 

@dr-nmayeda

[Edited 04/08/2024, 10:34 AM,PST]

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies