Will a taxpayer get a refund for the CA taxes withheld if there is no tax due? This is a military return where they are stations in WA but W2 is coming from Cali.

[taammaarr-gmail-]

This is the first year of taxpayers business C.

[sjrcpa]

Why wouldn't they?

A CA return does need to be filed to get it.

[abctax55]

Make sure you source the W-2 income to CA if has CA withholding, assuming the W-2 was prepared correctly.

And yes, a refund can exist even if tax is zero (assuming the tax really is zero...)

[qbteachmt · Accepted solution]

I did find this a bit confusing: "for the CA taxes withheld if there is no tax due?"

Because you stated they have a business (Sched C) in WA, but W2 from California? And there might be no Balance due, or some tax owed to which their prepayment from withholding will be applied. Because withholding is not Taxes; it's just in case of taxes. The States and Fed typically want some prepayment, just in case there will be taxes owed.