Think it hasn't happened yet.
I'm still waiting for something more specific than "I found a "2016 Spidell Publishing Inc Ca Taxation of New Residents and Nonresidents" document that had a difference for examples 1 & 3."
What was the difference?
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1] I wanted to verify the four examples, particularly examples 1 & 3, treated the income correctly. I included the detail to be precise. An H&R Block Ca Nonresident Returns text book treats the income as shown in the examples, but I found a "2016 Spidell Publishing Inc Ca Taxation of New Residents and Nonresidents" document that had a difference for examples 1 & 3. Ca FTB pubs 1031 (Guidance for Determining Resident Status) and 1100 (Taxation of Nonresident and Individuals Who Change Residency) did not cover the examples. So I was just looking for verification.
2] I received one response on the Tax Research Center message board to the same question that agreed with the examples.
3] I created the the worksheets by simply typing up the 2019 CA(540NR) tax form on a word document. I pasted the worksheets to the message board and they pasted perfectly.
ThanksLeave a comment:
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welcome to the TTB website. Think a California tax specialist reply poster can help with your scenario.
Very impressive display of a word document. How did you add this to your post?Leave a comment:
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"Are the following four examples in the attachment word document correct regarding a California tax return "
I find your question too open-ended and the detail, including the complicated tabular formats, too overwhelming.
Let's turn it around - why do you think any of the four examples might not be correct? Or what specific item did you not understand? What is the source of these worksheets? A professional tax software program? Or is this just a homework assignment?
I'd be happy to try to respond to more specific questions. Maybe others will have the time to trouble-shoot and debug your examples from start to finish, I guess we'll see.Leave a comment:
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CA MFJ Nonresident Tax Questions
Are the following four examples in the attachment word document correct regarding a California tax return for an MFJ couple where the taxpayer is a full-year CA resident and the spouse is a full-year nonresident? Since the spouse is a Ca nonresident, they file a Ca nonresident 540NR tax form.
Notes:
1] Interest generally has a source where the taxpayer is a resident.
2] Income from intangible personal property generally has a source where the owner resides.
Example 1: Both people live in community property states. They earned $800 in a joint CA account (Ca source interest). They each receive one-half ($400) of the interest.
Taxpayer: Ca resident
a) The $400 interest is Ca-source income since the taxpayer is a Ca resident.
1] Since Ca is a community property state, the AZ-resident spouse receives $200 of this Ca-source
income and it must be included on the Ca return.
2] The taxpayer’s remaining $200 is taxable in Ca.
Spouse: AZ resident
a) The $400 interest is AZ-source income since the taxpayer is an AZ resident.
1] Since AZ is a community property state, the CA-resident taxpayer receives $200 of this AZ-source
income and it must be included on the Ca return since it is world-wide to the Ca-resident taxpayer.
2] The spouse’s remaining $200 is not taxable in Ca as it is AZ-source income
Total Ca taxable interest in Column E: $600 as shown in the CA(540NR) figure below.
California Nonresident Form CA (540NR) – AdjustmentsExample 2: The taxpayer lives in a community property state and the spouse lives in a separate property state.Part I Residency Information During 2019 1 My California Residency (check one) a myself Nonresident Part-Year Resident X Resident b Spouse X Nonresident Part-Year Resident Resident Yourself Spouse/RDP 2a I was domiciled in (enter two letter code) CA AZ 5 I was a CA resident the entire year (enter state of residence) CA AZ 6 The number of days I spent in CA for any purpose was: 365 0 7 I owned a home/property in CA (Enter Y for yes, N for no) N N PART II Income Adjustment Schedule A B C D E Section A – Income Federal Amounts
(Taxable amount from your Fed Tax Rtn)Subtractions
(difference between Ca & Fed law)Additions
(difference between Ca & Fed law)Total amounts using Ca law as if you were a Ca resident (Subtract col B from col A; add col C to the result) CA amounts
(Income earned or rcvd as a Ca resident and income earned or rcvd from Ca sources as a nonresident)1 Wages, salaries, tips, etc 2 Interest income 800 800 600
They earned $1000 in a joint CA account (Ca source interest). They each receive one-half ($500) of the interest.
Taxpayer: Ca resident
a) The $500 interest is Ca-source income since the taxpayer is a Ca resident.
1] Since Ca is a community property state, the MT-resident spouse receives $250 of this Ca-source
income and it must be included on the Ca return.
2] The Ca-resident taxpayer’s remaining $250 is taxable in Ca.
Spouse: MT resident
a) The $500 interest becomes MT-source income since the taxpayer is an MT resident.
1] Since MT is a separate property state, the CA-resident taxpayer receives $0 of this MT-source
income.
2] The spouse’s $500 is not taxable in Ca as it is MT-source income
Total Ca taxable interest in Column E: $500 as shown in the CA(540NR) figure below.
California Nonresident Form CA (540NR) – AdjustmentsExample 3: Both people live in community property states. They earned $200 capital gains (intangible) in a joint CA account (Ca source income). They each receive one-half ($100) of the income.Part I Residency Information During 2019 1 My California Residency (check one) a myself Nonresident Part-Year Resident X Resident b Spouse X Nonresident Part-Year Resident Resident Yourself Spouse/RDP 2a I was domiciled in (enter two letter code) CA MT 5 I was a CA resident the entire year (enter state of residence) CA MT 6 The number of days I spent in CA for any purpose was: 365 0 7 I owned a home/property in CA (Enter Y for yes, N for no) N N PART II Income Adjustment Schedule A B C D E Section A – Income Federal Amounts
(Taxable amount from your Fed Tax Rtn)Subtractions
(difference between Ca & Fed law)Additions
(difference between Ca & Fed law)Total amounts using Ca law as if you were a Ca resident (Subtract col B from col A; add col C to the result) CA amounts
(Income earned or rcvd as a Ca resident and income earned or rcvd from Ca sources as a nonresident)1 Wages, salaries, tips, etc 2 Interest income 1000 1000 500
Taxpayer: Ca resident
a) The $100 interest is Ca-source income since the taxpayer is a Ca resident.
1] Since Ca is a community property state, the AZ-resident spouse receives $50 of this Ca-source
income and it must be included on the Ca return.
2] The Ca-resident taxpayer’s remaining $50 is taxable in Ca.
Spouse: AZ resident
a) The $100 interest is AZ-source income since the taxpayer is an AZ resident.
1] Since AZ is a community property state, the CA-taxpayer receives $50 of this AZ-source income
and it must be included on the Ca return since it is world-wide income to the Ca-resident taxpayer.
2] The spouse’s remaining $50 is not taxable in Ca as it is AZ-source income
Total Ca taxable interest in Column E: $150 as shown in the CA(540NR) figure below.
California Nonresident Form CA (540NR) – AdjustmentsExample 4: The taxpayer lives in a community property state and the spouse lives in a separate property state.Part I Residency Information During 2019 1 My California Residency (check one) a myself Nonresident Part-Year Resident X Resident b Spouse X Nonresident Part-Year Resident Resident Yourself Spouse/RDP 2a I was domiciled in (enter two letter code) CA AZ 5 I was a CA resident the entire year (enter state of residence) CA AZ 6 The number of days I spent in CA for any purpose was: 365 0 7 I owned a home/property in CA (Enter Y for yes, N for no) N N PART II Income Adjustment Schedule A B C D E Section A – Income Federal Amounts
(Taxable amount from your Fed Tax Rtn)Subtractions
(difference between Ca & Fed law)Additions
(difference between Ca & Fed law)Total amounts using Ca law as if you were a Ca resident (Subtract col B from col A; add col C to the result) CA amounts
(Income earned or rcvd as a Ca resident and income earned or rcvd from Ca sources as a nonresident)1 Wages, salaries, tips, etc 2 Interest income 200 200 150
They earned $400 capital gains (intangible) in a joint CA account (Ca source income). They each receive one-half ($200) of the income.
Taxpayer: Ca resident
a) The $200 income is Ca-source income since the taxpayer is a Ca resident.
1] Since Ca is a community property state, the MT-resident spouse receives $100 of this Ca-source
income and it must be included on the Ca return.
2] The taxpayer’s remaining $100 is taxable in Ca.
Spouse: MT resident
a) The $200 interest becomes MT-source income since the taxpayer is an MT resident.
1] Since MT is a separate property state, the CA-resident taxpayer receives $0 of this MT-source
income.
2] The MT-resident spouse’s $200 is not taxable in Ca as it is MT-source income
Total Ca taxable interest in Column E: $200 as shown in the CA(540NR) figure below.
California Nonresident Form CA (540NR) – AdjustmentsPart I Residency Information During 2019 1 My California Residency (check one) a myself Nonresident Part-Year Resident X Resident b Spouse X Nonresident Part-Year Resident Resident Yourself Spouse/RDP 2a I was domiciled in (enter two letter code) CA MT 5 I was a CA resident the entire year (enter state of residence) CA MT 6 The number of days I spent in CA for any purpose was: 365 0 7 I owned a home/property in CA (Enter Y for yes, N for no) N N PART II Income Adjustment Schedule A B C D E Section A - Income Federal Amounts
(Taxable amount from your Fed Tax Rtn)Subtractions
(difference between Ca & Fed law)Additions
(difference between Ca & Fed law)Total amounts using Ca law as if you were a Ca resident (Subtract col B from col A; add col C to the result) CA amounts
(Income earned or rcvd as a Ca resident and income earned or rcvd from Ca sources as a nonresident)1 Wages, salaries, tips, etc 2 Interest income 400 400 200
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