Is a pension from another state taxed in California as a non-resident

Forum|Forum|2 years ago
February 18, 2024
1 reply
0 views

I have been a non-resident of California receiving two teacher retirement pensions - one from CA and one from another state in which I reside. On Schedule A (540NR), Part II, Section A, line 5b, I subtracted in column B the amount of my CA pension as I am entitled to do as a non-resident because I am not taxed on it. However, it looks like CA is still keeping my out of state pension as part of my income and taxing it. The instructions states for this line on the form: Do not deduct income that was earned while a nonresident of California or from sources outside of California. How do I ensure that CA does not tax my pension from another state where I already pay taxes on it?

DoninGA

Employee

If you have not worked or lived in California at any time in 2023 then you do not need to file CA tax return.

You only report your income on your resident state tax return, if your state has a personal income tax.

The pension payment from CA is not taxable by CA if you do not reside or work in CA.

ds102Author

Yes, I know that as mentioned and that has been subtracted from this form. My concern is a pension from the state in which I now reside - how do I make sure that CA is not taxing it as income in the Schedule CA 540NR form as the instructions say I can't subtract it as it was income from out of state? Thanks!

DoninGA

Employee

Then you will need to explain why you are filing as a nonresident of California if you do not reside or work in CA. There is no need for you to file a Form 540NR.

You received pension income, that is reported on a Form 1099-R. On the Form 1099-R are CA state income taxes being withheld in box 14 of the 1099-R?