1099R and CA 540NR

[Terry D EA]

Client had withdrawn funds from an IRA that was based in CA. The 1099R form only shows CA as the state. No state identification number, no state distribution and no state withholding. Because of the CA on the form, Drake is generating CA 540NR as my client is not a resident of CA. Should I still file the CA540NR?

I'm going to take time to research this but thought I could get a faster response here so thanks in advance.

[BulldogTom]

CA cannot tax retirement income if the recipient is a non-resident.   They lost that case a long time ago.   If your client was a part year resident, that might be a different story.   Remove the CA in the state box and delete the CA 540NR.   Your client does not have a filing requirement.

Tom
Longview, TX 

[jklcpa]

41 minutes ago, Terry D EA said:

only shows CA as the state. No state identification number, no state distribution and no state withholding

Exactly what Tom said above.  Drake is only generating the CA540 because of that "CA" you've entered.  If the resident state picks up the data from the federal input, it should show up properly on the resident state return, but if it doesn't then you may have to make an entry for the state income to be correctly reported.

[mircpa]

I would go to brokerage to take out CA as resident state if in fact client is not a resident.

[Terry D EA]

Thanks Everyone for the great responses.