Question

I became part-year CA resident in mid-2021. I continued to foreign income till Nov. Does the software calculate the CA tax on foreign income correctly? it shows $0 now.

Forum|Forum|4 years ago
April 17, 2022
1 reply
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I thought the part of the foreign earned income (July-Nov) would be taxed by CA.

TurboTax Deluxe Online

No. TurboTax will not automatically calculate part-year income because it doesn’t know what income you earned in California and what income you earned elsewhere.

You’ll have to enter the federal portion of foreign income you earned while a California resident.

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Z

zelj671509Author

OK. Appreciate your reply.

Where should I input that information in the CA State forms? I did not see an obvious place to add that portion of the foreign earned income exclusion in the Turbotax boxes. Thanks.

E

ErnieS0

I’m confused. Any foreign income you earned after you became a California resident would not qualify for the foreign earned income exclusion if you were living in California and receiving foreign income.

TurboTax will automatically add back any income excluded under FEIE for the period prior to your CA residency on the CA return on Schedule CA (540NR).

This would not be taxable to CA, but is used to calculate your CA base tax rate, which is based on total income.

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