If you have any questions related to the information contained in the translation, refer to the English version. Any differences created in the translation are not binding on the FTB and have no legal effect for compliance or enforcement purposes. The web pages currently in English on the FTB website are the official and accurate source for tax information and services we provide. Consult with a translator for official business. This Google™ translation feature, provided on the Franchise Tax Board (FTB) website, is for general information only. Visit 540NR Booklet for more information. Nonresidents or Part-Year Residents (540NR).Nonresidents or part-year residents with a filing requirement must file: Visit Taxation of Nonresidents and Individuals who Change Residency (FTB Publication 1100) for more information. Your standard deduction is the larger of:Ĭalifornia uses its own method for calculating the tax of part-year residents and nonresidents. It cannot be more than the normal standard deduction. If you can be claimed as a dependent on another person's tax return, you have a different standard deduction. ↵ Return to first table under the header California adjusted gross income Dependent filing requirement * If your 65th birthday is on January 1, 2024, you are considered to be age 65 on December 31, 2023. Match your filing status, age, and number of dependents with the 2023 tax year tables below.įor previous year tables, visit that year's tax booklet. If your income is more than the amount shown in any of the tables below, you need to file a tax return. Visit Market-based sourcing for independent contractors for more information. The location where the independent contractor/sole proprietor performs the work is not a factor. Will you need to file a California return?Ĭalifornia source income for independent contractors/sole proprietors is determined by looking to where the benefit of the service is received by the customer. In addition to obtaining customers in your new state, you still perform services for California customers who receive the benefit of your services in California. You are an independent contractor/sole proprietor who relocates to another state. Visit FTB Publication 1031 for more information. If you’re domiciled in California but are outside of California under an employment-related contract, you may qualify as a nonresident under safe harbor. If you paid tax to another state on this income, you may be entitled to an Other State Tax Credit. California residents are taxed on income from all worldwide sources. You temporarily relocate to another state for employment purposes, but plan to return, or have returned, to California.Īnswer: You may still be considered a resident of California. Visit FTB Publication 1004 for more information. However, if you had "deferred" or Equity-Based Compensation, you may still have California sourced income. Generally, if you are a nonresident and all services were performed outside of California, this would not be California sourced income. Do you need to file a California return and pay California income tax?Īnswer: Maybe. Similar to Scenario 1, except you perform all of your services outside of California after relocation. There are special rules for "deferred" or Equity-Based Compensation. % Ratio x Total Income = CA Sourced Income One way to calculate the portion of your income that is California sourced is to multiply your total amount of income for the year by a ratio of your total number of days performing services in California over your total number of days performing services worldwide. You will need to file a California Nonresident or Part-Year Resident Income Tax Return California Nonresident or Part-Year Resident Income Tax Return (Form 540NR), to report the California sourced portion of your compensation. Income from California sources while you were a nonresidentĭuring the nonresident portion of the year (or if you are a full-year nonresident), you will have California source income to the extent you physically performed services in California.All worldwide income received while you are a California resident.If you are a part-year resident, you pay tax on: Do you need to file a California return and pay California income tax? You periodically travel to and from California in order to perform services for your employer. You relocate to another state and continue to work remotely for a California employer. Equity-based Compensation Guidelines (FTB Publication 1004).Taxation of Nonresidents and Individuals who Change Residency (FTB Publication 1100).Guidelines for Determining Resident Status (FTB Publication 1031).Visit the following publications for more information: As a part-year resident, you pay tax on all worldwide income while you were a resident of California.
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