ETax847 Posted March 2, 2016 Report Share Posted March 2, 2016 I need help in preparing my first California multi-state return. Client lived in Illinois for the first 6 months of the year. She moved to California as of June 1 and resides there permanently. Client made 100k in 2015. 40k earned while living in Illinois, 60k earned while she moved to California. For the California Part Year resident return, will the client be taxed on all wages earned or just the CA piece? If an adjustment is to be made, on what schedule is this done on? I understand the Illinois piece, the CA part is what I am unclear on. Thanks! Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted March 2, 2016 Report Share Posted March 2, 2016 It has been a while but I think CA will only tax the portion of the income earned in CA. you may have to report the total and show credit for taxes paid to Illinois. Not sure of what schedule to use. Maybe Tom or KC will chime in here to straighten us both out. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted March 2, 2016 Report Share Posted March 2, 2016 Nope, file a CA NR return and the adjustment is shown on CA Sch CA. The apportionment is based on percentage of CA income vs. out of state income. 1 Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted March 2, 2016 Report Share Posted March 2, 2016 Thanks Joan for posting this. The CA NR hadn't crossed my mind. Wouldn't it be a toss up as to which State the person would be a non-resident of? The OP stated 6 mo in Illinois and 6 mo in CA. What is CA's criteria that establishes residency? Wouldn't it be better to file CA as a resident and Illinois as a part year or non-resident due to the fact the tax payer made CA their permanent residence? I'm probably messing this up and in no way am I suggesting it should be done this way. Iinquiring minds want to know. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted March 2, 2016 Report Share Posted March 2, 2016 The client is a part year resident of both states. The CA NR is for non or part year residents. 1 Quote Link to comment Share on other sites More sharing options...
ETax847 Posted March 2, 2016 Author Report Share Posted March 2, 2016 Thanks Joan, can you guide me as to the line in CA SCH where the adjustment should be made? I appreciate your help greatly on this! Quote Link to comment Share on other sites More sharing options...
joanmcq Posted March 3, 2016 Report Share Posted March 3, 2016 Are you using ATX? I always just hop from the apportionment page to the underlying worksheet that allows you to input what was CA sourced as a CA resident vs what was not CA source as a nonresident. Quote Link to comment Share on other sites More sharing options...
ETax847 Posted March 3, 2016 Author Report Share Posted March 3, 2016 what form is the apportionment page found? Sorry for all the questions and I appreciate your help Quote Link to comment Share on other sites More sharing options...
JMovichEA Posted March 3, 2016 Report Share Posted March 3, 2016 I believe it's 540 NR Schedule CA https://www.ftb.ca.gov/forms/2015/15_540nrca.pdf Quote Link to comment Share on other sites More sharing options...
joanmcq Posted March 4, 2016 Report Share Posted March 4, 2016 Yes, that's the form, I described it a bit different. Quote Link to comment Share on other sites More sharing options...
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