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Do I have to File?

Level 1

Hello Everyone,

I have a new client that lives in and is a resident of Nevada. He and his wife lived in Nevada for the entire year of 2023. His wife works for a company that resides in California. She received a w-2 for California State withholding. The state of California claimed they want a tax on over 47% of the Gross. The State withheld 6%. His wife traveled to California on occasion at the most 10 times last year at the company's expense. I need help on whether they are required to file a state return or if is possibly a mistake on the company's behalf. I have read on ftb.ca.gov, website the nonresident ruling, however, it is very vague, if anyone is an expert in California taxation rules I would very much appreciate the help and guidance for future reference.

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4 Comments 4
Level 15

Yes, you need to file.

How many days were spent in CA (a) on business and (b) shopping, skiing, takin' in the sun...., i.e. total days in CA and how many business days in CA. My guess is that the W-2 is answering that 47% of the income was derived in CA. 

Start to clarify your vagueness with FTB pub 1031 You can get your own copy by starting here https://www.ftb.ca.gov/forms/Search/Home/Index


Here's wishing you many Happy Returns
Level 15

Or did the company just not change her status from California resident, until she had earned 47% of the income for the year?  Was she a CA resident in 2022?  

Level 1

Thank you for the reply, come to find out through more detective work. She traveled to California, however; all the income and sales were made in Nevada. So she should be able to receive the tax back by filing a California return

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Level 15

"at the most 10 times last year"

You're stating this as if it is a minor thing. Every detail matters.

"His wife works for a company that resides in California."

It's called Remote Worker. Every State has its own way of handling this. In this case, your taxpayer has income sourced to CA.

"they want a tax on over 47% of the Gross."

It is typically listed on the W-2, or sometimes a second "page" W-2 is provided with State breakdown(s) for remote workers. Did they turn over all of their paperwork?

"Level Up" is a gaming function, not a real life function.
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