Young-TP
Level 3

I understand that federal law prohibits any state from taxing pension income of non residents even if the pension was earned within the state. 

RandyAZ
Level 3

Why are you filing a CA non-resident return?  Did they have CA w/h tax withheld or other CA source income?  

abctax55
Level 15

No, it shouldn't show up there.  CA can't tax pensions once the retiree moves out of the state (there are a few very limited exceptions).

IS there CA withholding on the F 1099-R?  As @RandyAZ  asks,  why you are filing a CA NR?

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Young-TP
Level 3

Filing 540 NR because TP sold a vacation home in CA and had withholding on CA form 593.  Just wanted to be sure I can make column E line 4C a zero. 

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Young-TP
Level 3

Filing 540 NR because TP sold a vacation home in CA and had withholding on CA form 593.  Just wanted to be sure I can make column E line 4C a zero.  So is your answer still no, don't have to include CA pension on column E line 4C?

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abctax55
Level 15

As previously stated, CA can't tax the retirement distributions if you no longer live in the state.  WITH very  few exceptions.

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