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Level 3
posted Mar 8, 2022 10:40:36 AM

Amount earned as if nonresident the entire year must be entered

 

Hi,

 

I am quite confused about which cell in the form is the "Amt as if Nonres" talking about? I am also not sure, what does this means "Amount earned as if nonresident the entire year must be entered". How should I fill in this value (or calculate this value)?

 

The context is quite complex: my wife and I lived in NJ for the first 10 months and lived in CA for the last 2 months of 2021; while for the entire year, I worked for a company in New York and my wife worked for a company in CA. 

 

Thanks for any feedback.

 

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1 Best answer
Expert Alumni
Mar 8, 2022 11:07:51 AM

Assuming your wife, while you were non-residents of CA, did not physically work in CA, the answer would be "Zero" for CA income assuming non-resident all year.  Another way to look at it is if you had not moved to CA for the last two months, there would have been zero CA income.

 

If there was some time while you were non-resident CA that she physically worked in CA then you would prorate the CA income based on the percent or ratio of workdays in CA out of total workdays.  

 

For example 20 workdays a month and 10 of those are worked in CA each month then 50% of the CA company income would be CA income if non-resident all year.

 

 

 

 

 

8 Replies
Expert Alumni
Mar 8, 2022 11:07:51 AM

Assuming your wife, while you were non-residents of CA, did not physically work in CA, the answer would be "Zero" for CA income assuming non-resident all year.  Another way to look at it is if you had not moved to CA for the last two months, there would have been zero CA income.

 

If there was some time while you were non-resident CA that she physically worked in CA then you would prorate the CA income based on the percent or ratio of workdays in CA out of total workdays.  

 

For example 20 workdays a month and 10 of those are worked in CA each month then 50% of the CA company income would be CA income if non-resident all year.

 

 

 

 

 

Level 3
Mar 8, 2022 11:10:12 AM

thanks you! 

Returning Member
Mar 27, 2022 8:13:43 PM

So I am in a similar situation where I'm being asked by Turbo Tax to enter "Amount Earned As If Nonresident the Entire Year must be entered".

 

Now in my case, I've been California Resident from 2017 up until the September of 2021 when I moved to NYC. I did not physically worked in California after moving to NYC but I got 4 RSU vests throughout 2021. Most of the RSUs that vested were granted to me in years prior to 2021 when I was a California resident. Now, California has this rule that even if you stop being its resident you are supposed to keep paying taxes on vested RSUs (using some special allocation rules) as long as these were granted back when you were a California resident.

 

What should I put into "Amt as if Nonres" field in my case? I assume that the amount should be non zero since even if I had been a California non resident for the whole 2021 I would've had to pay taxes on some of the RSUs that vested? Am I correct?

Expert Alumni
Mar 28, 2022 8:11:16 AM

@CoffeeBreak  You are correct.  California would consider those to be "income from California Sources".  

Returning Member
Mar 28, 2022 10:00:52 AM

@RobertB4444 Thank you - that makes sense. What I have trouble understanding is @DMarkM1's response to the initial question in this thread. According to @DMarkM1's response, even though @douglasjia's wife worked for the CA company for the whole year, if we assume that she was not a California resident for the whole year she would need to report 0 as her California "as if non resident income". And that's despite that fact that for the last 2 months of the year she was physically located in the CA.

 

So in my case, I was located in the California up until September and I continued to receive salary (wages) from my CA employee. Now, if we assume that I had not been a California resident I think that I would still need to report my California wages for the purpose of California "as if non resident income" field - is that correct? That's because I was located in California and my company's office was located in the California too.

Expert Alumni
Mar 28, 2022 11:25:30 AM

According to ftb.ca.gov, as a nonresident, you pay tax on your taxable income from California sources.

 

Sourced income includes, but is not limited to:

  • Services performed in California
  • Rent from real property located in California
  • The sale or transfer of real California property
  • Income from a California business, trade or profession

So in the first, example the wife would needed to report her California sourced income as  a non-resident. In your example, the same condition would apply.

 

@CoffeeBreak 

 

 

New Member
Apr 12, 2022 11:49:58 PM

what if i moved to california and physically worked in california?

Employee Tax Expert
Apr 13, 2022 4:30:47 AM

If you moved to California in 2021, you would file a part-year resident return. You would be liable for all of your income when you were a resident of California, as well as any income earned from California sources when you were a nonresident.

 

@rain24