Does a Calif 540NR non resident individual return allow allocation of wages

[John of PA]

Does a Calif 540NR allow for the non resident; allocation of the CA W-2 wages by number of days worked in and out of Calif. Taxpayer is resident of PA and had Calif. taxes withheld on all wages, but taxpayer only spent 3 days of the year in Calif. Taxpayer works out of their home in PA. Thank you for any help.

[Rapid Robert]

Does a Calif 540NR allow for the non resident; allocation of the CA W-2 wages by number of days worked in and out of Calif.

No, there is no allocation based on days. It is either CA source income or it is not. Obviously the employer thinks it is; you may have an uphill battle with CA FTB taking a position otherwise.

[John of PA]

Thank You

Thank you Rapid, I was afraid of that. Most states allow the taxpayer to allocate wages based on the # days. The taxpayer will have to deal with their employer on this one, thanks again.

[Burke]

VA is the same way; income reported is based on where it is earned.

[Lion]

NY defines NY-source income as under the control of a NY employer, no matter where the taxpayer bases his work, as a short explanation. (A NY employee calling on a CT client is "out of state" for the employER's convenience, but a NY employee working from his CT home when he could perform the same duties in NY is working for the employEE's convenience and is "NY income.") CT defines CT-sourced income as earned in CT. You have to follow state law.

[John of PA]

Thank you for the post. I don't see anywhere on the Calif. 540NR return to tell Calif. the wages are not subject to Calif becasue the employee does not work in Calif.

[Snaggletooth]

Not taxable

Just because you were "in" California doesn't mean you earned money in California. You might have been to Disneyland or attended a UCLA game.

Your problem is with the employer. As long as your employer considers this California wages, you are "cooked." California will definitely take your money. If indeed there is an "allocation" of wages, this would have to be controlled by the employer by issuing two or more W-2s with state wages.

I'm sure the California 540NR will in fact allow an allocation of all income. But they will not rescue you by allowing a wage allocation if the employer has designated your pay as California wages.

[Burke]

OP did not state if employer was based in CA. I just assumed this was the issue.