oregon permanent resident 2022 taxed on california 1099 r income ( worked in California there whole life )on oregon return

[rugby1]

oregon permanent resident 2022 taxed on california 1099 r income ( worked in California there whole life )on oregon return

[George4Tacks]

What is your question?

Where was this client a resident for 2022?

Did this resident fail to inform their pension plan that they are no longer a resident of California?

Are you wondering how to file this return and NOT have it be CA taxable?

One of my idiot clients retained a CA mailing address for their pension to keep their favorite health plan, but was a full time resident of OR. They had a vacation home in CA. I managed it, but I might keep the solution as a trade secret.

[rugby1]

MAJOR APOLOGIZES having a brain dead day, Oregon resident all of 2022 moved for retirement, 2022 income social security, 2021 california tax refund, 1099-r retirement as school teacher, I hope makes this a little clearer, Are you wondering how to file this return and NOT have it be CA taxable? Yes. Your input will be beyond greatly appreciated

[joshuabarksatlcs]

I don't know about OR, whether it taxes its residents on worldwide income (including for example pension reported on 1099-R, benefits once earned in CA).  Thus no comment if there WAS a question.

I have a Martian client, worked all his life in Mars, even helped NASA in retrieving the pieces from the thingie that landed on Mars.  He moved to California.  His pension from Mars is taxable for CA tax purposes.  CA is a worldwide-income-taxable-TYVM state.  (PS don't believe @IRonMaN if he also claims to have a client from Mars.)

In case the above echoes the original posting.   

[joshuabarksatlcs]

Okay.  Now there seemed to be a question.

In January 1996, President Ain't-it-cool-playing-Sax-on-SNL signed a so-called Source Income Law.  Since then, CA no longer could tax former residents on their retirement income sourced from their prior CA earnings.   

If there was CA withholding on the 1099-R, one way is to file a CA NR return and claim the 1099-R income as non-CA source.  Perhaps attach a note.

@George4Tacks 's post was about his trade secret in defending a former CA resident from being classified as a resident despite the ties.  It would be useful to know IF CA challenged the filing as a NR - probably Step 10. 

Step 1, file a NR CA return and claim the refund.  Wait for Step 10, if it happened.     

[rugby1]

new questions cilent who moved from california to oregon permanently in 2022 will be taxed by oregon on their

100r retirement from the state of california, correct ? 

[George4Tacks]

Yes, for the portion of the year they were a resident. Include income received while a resident of the specific state. e.g. Payments are made on the 5th of each month. The client moves from CA to OR on July 10th. Then 7 payments are taxable to CA and 5 payments are taxable to OR.

[George4Tacks]

@joshuabarksatlcs Every return was just blandly accepted by CA. I am unsure of how it went for the rest of their life after I sold the business. I often think of calling them just to touch base. 

I know it may seem weird, but after selling a practice that you had owned for 30 years, you really do miss catching up with their life on your annual meeting. There were actually clients that had visited that location for 50 years. 

I can't say enough kind things about the person I handed them of too. In fact I can't even think of one kind thing.  

[joshuabarksatlcs]

RE: Then 7 payments are taxable to CA and 5 payments are taxable to OR.

Except that, IF  the return was done by @IRonMaN , he would ask: "what about the 13th month?"

Anyway I just wanted to add this: in this scenario, the client would be filing two "Part-Year returns". 

For CA, it would be on F540NR.  Fill out Schedule CA (540NR).  You're on your own for OR.  

[IRonMaN]

@joshuabarksatlcs  - you must be lonesome if you keep on trying to drag me into these posts.  Every once in a while even I have to get some work done. 😀