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.

[Young-TP]

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

[RandyAZ]

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

[abctax55 · Accepted solution]

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?

[Young-TP]

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. 

[Young-TP]

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.  So is your answer still no, don't have to include CA pension on column E line 4C?

[abctax55]

As previously stated, CA can't tax the retirement distributions if you no longer live in the state.  WITH very  few exceptions.