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CA help - Gambling earnings for non-resident

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    CA help - Gambling earnings for non-resident

    Client and spouse are both on active military duty in California. They use married filing separately as their filing status (I prepare only the wife's taxes.) Their home-of-record states are both on the East Coast.

    A California tax return has never been filed, nor has a Form 8958, as community property rules apply to neither.

    Wife recently won ~$3k at a gambling resort in the Los Angeles area. I assume 2021 tax documents for that income will be generated.

    Where does this person stand with regard to filing any 2021 California income tax return? I would assume the gambling income (only) will likely be taxable to CA. If so, how do the community property issues get reported on any CA tax return for the wife? Certainly their military wage income, and interest/dividend income, would not be taxable by CA.

    Thanks in advance. At this point I'm just trying to give them a heads up warning for 2021 income taxes. It would be simpler NOT to file any CA tax return, but I fear she may not have that luxury.


    See link for CA filing requirements Doesn't look like she will have a filing requirement