Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

I have a question about CA 540 NR Column E line 4c, whether a CA pension has to be included on that line. TP is a full year resident of AZ and the pension is taxed on the AZ return.

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. 

Labels (1)
1 Solution

Accepted Solutions
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?

Former Chump..umm... AllStar...This message was typed from 6 feet away so you can safely read it immediately.

If a post answers your question, click on *Accept as solution* for future searches

View solution in original post

5 Replies 5
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?

Former Chump..umm... AllStar...This message was typed from 6 feet away so you can safely read it immediately.

If a post answers your question, click on *Accept as solution* for future searches

View solution in original post

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. 

0 Cheers
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?

0 Cheers
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.

Former Chump..umm... AllStar...This message was typed from 6 feet away so you can safely read it immediately.

If a post answers your question, click on *Accept as solution* for future searches