Part Year CA resident

[superman]

I have a client that moved back to CA from NV. He had income from both states about the same and he moved back to CA on 6-1-06. I use Drake and can not find how to have the program only tax the portion for CA. Any help is appriciated.

Superman

[jainen]

report ALL income

>>how to have the program only tax the portion for CA<<

California requires you to report ALL income received during the year from all sources, and calculates the tax on the total. Then it prorates the total tax by the ratio of California income. Most other states do it the same way.

[RLymanC]

Ca &amp; Nv

You program should allow you to choose part year CA and part year NV

In the state portion of the W-2 type CA for the CA income and type NV for the NV income.

Program should allocate the proper income to CA, you need not include any NV income in the CA return.

This assumes that he was a NV resident and moved back to CA. If he was a CA resident and worked in NV you will have to pay CA taxes on all income. The reason for this is NV has no State income tax, so CA taxes it all. If taxes were paid to another state CA gives you credit for other state taxes, but NV has no tax.

[thomtax]

In Drake, on page 1, be sure that in the box titled resident state you have marked PY for partial year. Then go to CA in the states section. On the NR screen you will have places to enter for the dates and states involved. The program should then take care of the proper amounts for each state.

Of course, be sure that on each W2 you enter the correct state code, in the states section, for the earnings.

Hope this helps.

LT

[superman]

Thanks

for the info. it worked perfect. I love this board everyone sure is helpful. When you are working by yourself it is so nice to know there is somewhere you can get some kind of help.


Superman