Moved from TX to CA; How is CA amounts calculated?

[mainhoon]

I moved from TX to CA. I had W2 wages both while in TX and in CA, with their respective employers. I am doing part year taxes for CA.

I am seeing 540NR Schedule CA, Part II, Line 7 with the columns A B C D E. The last column E - CA Amounts - that just sounds like my W2 wages while I was in CA i.e., wages I received while in CA, I did not receive any wages from CA sources while in TX. But that # does not match 540NR, Line 12 which is the Total CA Wages from W2, box 16.

For the life of me, I don't understand why they don't match. Can someone please help?

[KarenJ]

I checked the instructions for Form 540NR and do not see why your wages would change on line 7.  Please see attached instructions page 47.

https://www.ftb.ca.gov/forms/2017/17_540nrbk.pdf

Column E —  California Amounts Column E is used to show how much of the amount of income reported on Schedule CA (540NR), column D is taxable by California. The taxable amount depends on your residency status. • Full-year California resident: A resident is taxed on all income from all sources, including income from sources outside California. Follow the “California Resident Amounts” instructions for each line below. Full-year residents use Long Form 540NR if filing jointly with a spouse/RDP who is a nonresident or a part-year resident. • Full-year nonresident: A nonresident is only taxed on income derived from California sources. Follow the “California Nonresident Amounts” instructions for each line below. • Part-year resident: A part-year resident is taxed on all income from all sources while a resident and only on income derived from  California sources while a nonresident. Follow the instructions as stated in the Part-Year Resident Worksheet instructions. Refer to instructions for each line below to be sure you are including the correct amounts. Line 7 – Wages, Salaries, Tips, Etc. California resident amounts – Enter the wages, salaries, tips, or other compensation that you received while a California resident. Active duty military personnel, who are domiciled in California and stationed in California, report their military income here. Get FTB Pub. 1032 for more information. California nonresident amounts – If you worked in California while a nonresident, enter the wages, salaries, tips, or other compensation received for those California services.

The Calif nonresident/part-year return, Form 540NR, computes your income and tax as if you were a resident the entire year, then computes a net tax rate by dividing the total tax by total taxable income. Your California-source taxable income is then multiplied by that net tax rate to determine your California tax.

[mainhoon]

Thanks for the answer. So simply put, lets say my entire W2 wages is 200$. That goes in Col A on Line 7. Of the 200$ say 50$ came from wages while I was a resident in CA the remaining 150$ was from TX wages - CA had no role in this 150. So should not the Col E on Line 7 be 50$? and that is the amount that should also be on 540NR Line 12.

[KarenJ]

Do you have any additions or subtractions in column B or C?

[mainhoon]

no nothing in B or C

[KarenJ]

Give me a few minutes to check a few more things

[KarenJ]

There is a screen after "Here's the income that California handles differently" after which you click done with adjustments.  The next screen is titled "Nonresident Adjustments" and you are advised not to leave any field blank for this section.  Click continue.  The next screen is titled , Tell us about your California income and lists underneath the title your annual wages and under that a box where you are to input the wages you earned only in CA.  Somehow you must have missed this screen.