California - Non-residency status wrongly filled by TurboTax

Forum|Forum|5 years ago
July 10, 2020
2 replies
0 views

Hi, In 2019, I moved out of cali to foreign country in Feb. But i am still trying to file tax or california as a part-resident (or non-resident)

When I try to fill it in questionnare from turbox , turbotax asks me a question "Were you non-resident of cali for all of 2019" - I say NO because i was in california for 35 days.

But turbotax is automatically changed it to Yes 😞 and claiming me as non-resident for complete year. This is reflected in form 540NR. This is very confusing. Can this create a problem? Need urgent help !!

TurboTax Premier Online

arunAuthor

Employee

Bumping this up to get help from TurboTax experts. Thanks !!

SusanY1

This is the correct form. Form 540NR is the "California Nonresident or Part-Year Resident Income Tax Return" and is the appropriate form for any taxpayer who did not reside within the state, or is otherwise deemed a full-year resident for the entire year.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

arunAuthor

Employee

Thanks @SusanY1 for clarification.

Here is my main issue with the way TurboTax has filled in the following 2 questions in 540NR

4) I became a CA nonresident (enter new state of residence and date (mm/dd/yyyy) of move). / / / /

5) I was a CA nonresident the entire year (enter state of residence )

Since i was resident for the first 34 days of 2019, I expect Turbotax to fill in question for 4 specifying my date of move. Instead it leaves it BLANK and fills in answer to question 5. So this is going to convey wrong info to IRS stating i was non-resident for the entire 2019 year (though i stayed in california for 34 days). Should i fix this ? if so, how?

Note that my domicile has been changed to foreign country in 2019. Not sure if that's the reason for mentioning me as non-resident for the entire 2019 year. pls share ur thoughts.

Thanks @SusanY1 for timely help.

onesmallspeck

Hi,

Was this eventually resolved? I am filing my taxes currently and see the same bug. Schedule 540NR isn't filled completely.

i.e this is left blank, even though I have specified I have moved to a different country in 2023.

I became a CA nonresident (enter new state of residence and date (mm/dd/yyyy) of move)

MonikaK1

If you were a part-year resident of California in 2023, you should file a part-year resident California return.

As a part-year resident, you pay tax on:

All worldwide income received while a California resident
Income from California sources while you were a nonresident

See this California webpage for more information.

TurboTax should complete the correct forms, depending on your entries. The California interview allows you to make adjustments for income that shouldn't be taxed on your California return.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

onesmallspeck

Thank you for your response. I am filing as a part year resident for 2023. While Turbo Tax computed that correctly, it didn't fill form Schedule 540 NR completely (as others have said in this thread).

There is no way for me to manually override and fill it. And it seems it has been a issue for multiple years now.