Personal Finance & Money Asked on August 4, 2021
I am filing taxes for 2020 as CA non-resident because I have provided a CA address on my US trading account. I have foreign earned income, foreign interest, dividends from the trading account, and US capital gains as components of my income. There are column D and column E in schedule CA with column D representing the result obtained by adjusting federal entries by California specific adjustments, and column E expecting "(income earned or received as a CA resident and income earned or received from CA sources as a nonresident)". I was not a CA resident during 2020. Also, the foreign income and interest have nothing to do with CA. Should they still appear in column E?
If not, I don’t see the corresponding subtractions to include in column B to offset the values in column A that contains the federal entries. I am assuming that the entries in columns D and E should be consistent with each other in some way. I don’t clearly understand the purpose of columns B through D when column E clearly expects the tax payer to declare only CA sourced income or income obtained as a resident of CA. Can someone help? Thank you.
Columns B and C deal with differences between California law and federal law on each piece of income. The additions and subtractions in columns B and C have nothing to do with your residency or source of income. That may be your source of confusion. You can think of column D as your income taxable in California as if all of your worldwide income were taxable in California. So your foreign income, out-of-state income, and California income should all be included in column D. It is only in column E that you specify the portion of the amounts in column D should be taxable in California due to being a resident or having a source in California.
Answered by user102008 on August 4, 2021
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