What number do I enter in column E of Schedule CA 540NR?

[JohnW152]

You don't refer to a specific line number, but, generally, Column E is used for income from all sources while someone is a California resident, and income from California sources while someone is a nonresident.

For nonresidents specifically, it should reflect income derived from California sources. 

If you're a full-year nonresident, then, for each line with a Column E on Schedule CA (540NR), you should follow the "California Nonresident Amounts" instructions related to each line in the Instructions for Schedule CA (540NR).

[mlastudioproduct]

I'm military domiciled in California, stationed in Las Vegas, NV.  My refined question is for Part II, Line 5e as to what to enter for pensions and annuities since I withdrew money from my retirement account in which only $1,433 was taxable on my federal return. Looking at the instructions for Schedule CA 540NR, nonresidents aren't taxed on withdrawals. Any assistance is greatly appreciated.

[DawnC]

If you are domiciled in California, you are a resident of CA for tax purposes and should be filing a resident return, according to the CA-FTB.   

If you have changed your state of legal residence on Form 2508, from CA to another state, or are in another state via a Permanent Change of Station (PCS), you would file the nonresident return and enter 0 for CA taxable retirement income.  

FTB Pub 1100 - California does not tax the IRA distributions, qualified pension, profit sharing, and stock bonus plans of a non-resident. 

Military State of Legal Residence

[mlastudioproduct]

Thanks I guess I'll enter what my 1099R box 2a states in Schedule CA (540NR) Part II, line 5e. Since Federal taxes the taxable amount of my retirement withdrawal and California does not since I'm a nonresident per instructions below not living in California stationed elsewhere but joining out of California. 

Stationed outside of California

An individual domiciled in California when entering the military is considered a nonresident while stationed outside California on permanent change of station (PCS) orders.

We tax nonresidents on California sourced income. (From the link you shared) 

Line 5a and Line 5b – Pensions and Annuities (Taxable Amount) California resident amounts – Enter the portion of taxable pension and annuity income received while a resident of California. If this amount is a premature distribution and you owed the early distribution tax on your federal tax return, you generally owe this tax to California. Get form FTB 3805P to figure any additional tax due on this amount. California nonresident amounts – Qualified retirement distributions received by a nonresident are not taxable. For more information, get FTB Pub. 1005. [From the 2022 Instructions for Schedule CA (540NR)] 

Just want to make sure I enter the correct amount to not get in any trouble with the IRS or the California FTB.

[adyady]

Column E of schedule CA 540NR

Section B

number 5 -rental real estate, royalties,...

Do I take my total rental income and subtract all of my basic expenses or do I additionally subtract deductible rental real estate loss after limitation from form 8582? 

thank you

[MonikaK1]

When you prepare your return using TurboTax, enter all of your income and deductions in the Federal section.

After you finish with the Federal section, prepare your State return. Follow the TurboTax questionnaire to make adjustments needed for items that are different for California. See below for further instructions if you have passive loss carryovers from last year.

California law has not always conformed to federal law with regard to depreciation methods, special credits, or accelerated write‑offs. Consequently, the recovery periods and the basis on which the depreciation is calculated may be different from the amounts used for federal purposes. See the instructions for Form FTB 3885A for more information.

California law does not conform to the federal law for: 

• IRC Section 168(k) relating to the depreciation deduction for certain assets. 
• The enhanced IRC Section 179 expensing election. 
• The expanded definition of IRC Section 179 property for certain depreciable tangible personal property related to furnishing lodging and for qualified real property for improvements to nonresidential real property

California law does not conform to the federal limitation amounts under IRC Section 179(b)(1) and (2). For California purposes, the maximum IRC Section 179 expense deduction allowed is $25,000. 

Passive loss carryovers are not reported on Schedule E.  They are reported on the federal Form 8582 and on the California Form 3801. TurboTax will prepare these forms from your entries in the questionnaire. 

To enter the information, do the following if you have passive loss carryovers for California:

• You should make sure that such amounts are entered in the TurboTax/California (TT/Calif) activity.
• Go to that activity (rental, k-1, etc.) and Edit it.
• You will be asked if you have any carryovers associated with that activity. Select Yes and you will then have the opportunity to enter them.

The amounts are usually transferred in from your prior year TT/Calif return, but you must enter them if using TurboTax for the first time.

See this TurboTax tips article for more information on depreciation and Section 179 expenses.