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Turbo Tax lacking instuctions

California non resident return - Turbo Tax says enter California portion of self employed health insurance deduction from federal return, which is $5K+. What am I supposed to enter? All? None? A portion? I am using Mac Download version of Home & Business. Same question will apply to SE Tax, I401K contributions. Since my SE income didn't include California, TT says no deduction for 1/2 SE Tax. Thanks.

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4 Replies
BillM223
Expert Alumni

Turbo Tax lacking instuctions

Please tell us why you are filing a California nonresident return if none of your SE income was California source income. Did you have some other nexus (link) to California?

 

Generally, you will enter only items that pertain to California source income. This means that expenses that are directly related to income (but which income is not CA source income) will not be listed on the CA return either.

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Turbo Tax lacking instuctions

I'm filling out a California non resident return because I had W2 income associated with working in California. I hope they're getting their tax $$$ from pro athletes and rock stars. I had four jobs last year, not in California, that are classified as Sch C income. The SE tax, SE Health insurance, and I401K are all associated with the SE income. Guess that means don't include it in California return?

 

Second part of my question - posted separately - do I have to file a non resident state return if W2s reflect income and taxes withheld for a state? I'm spending $45 per state return - in California's case - to only get $30 back. Economically not worth it. Do I still have a legal obligation to file in those non resident states? Thanks.

BillM223
Expert Alumni

Turbo Tax lacking instuctions

"Guess that means don't include it in California return?" - Correct.

 

"Do I still have a legal obligation to file in those non resident states?" - As always in the world of tax, the answer is "it depends".

 

Please look at the California 540NR nonresident and part-year booklet. Start on page 3 and read from the heading "Do I have to File?". 

 

You probably would have to file because of your gross income (step 1), but might not have to file because of your CA AGI (step 2). Go through it, and if you decide not to file the state return, write down your logic and stick it in your tax file in case the state decides to write and ask you where your return is.

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Turbo Tax lacking instuctions

Too late for California, already purchased. Thanks for your help.

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