Can an individual (myself) still file a
return even if they've participated in a composite return for the
state? I'm part of a real estate investment partnership that has
filed a composite tax return in California, at the highest marginal
tax rate (13.3%).
If I file individually, it will allow me (a
nonresident) to recapture some of the rate differential between the
top rate (13.3%) used by the composite return, and my rate that will
be lower.
Can I just file an individual return, showing the
composite tax payment (made on my behalf) as my tax payment, and
request a refund? Does California allow that? How should I go about
it?
Additional note: this income is my only California income.
A California nonresident individual who is included in a composite filing may not subsequently file a California nonresident return for that same taxable year.
Exception: If an individual is included in a composite filing and later discovers that he or she did not qualify to be included in the composite filing, then that individual may file a nonresident California return to report all sources of California income.
Additional information regarding group nonresident returns ("composite" returns) can be found on California's Franchise Tax Board website, as follows: