Question for California Preparers

[NECPA in NEBRASKA]

I just want to make sure that I am correct in reading that a nonresident has to file a CA return for ANY amount of California source income? I just picked up a new client and they have never filed a CA return, but have CA royalty income from oil. Most other states that I have prepared have an amount like $1,000 gross, but I don't see that in the instructions. Just want to make sure, because my fee will jump quite a bit, if I have to prepare one. Thanks in advance.

[joanmcq]

It has to do with CA AGI, which is computed on the Sch CA-NR. If the CA AGI is above the filing requirement, then you have to file. No easy $$ figure.

[NECPA in NEBRASKA]

Thank you. I will prepare the form. This is why some people should not prepare their returns by hand. She had no idea that they might even be subject to taxes in other states.

[jainen]

>>If the CA AGI is above the filing requirement, then you have to file.<<

Not just AGI. According to the Franchise Tax Board, "If your gross income or adjusted gross income is more than the amount shown in the chart below [at bottom of page at "]https://www.ftb.ca.g...ions.shtml#ifr] for your filing status, age, and number of dependents, then you have a filing requirement." That means, for example, disregarding IRA contributions and other adjustments.

So generally if you have ANY amount of California source income and are required to file a return in any other state, you have to file California too.