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.

I understand that federal law prohibits any state from taxing pension income of non residents even if the pension was earned within the state.

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Best answer by abctax55

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?

Level 4

Why are you filing a CA non-resident return? Did they have CA w/h tax withheld or other CA source income?

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?

HumanKind... Be Both

Level 4

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.

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