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February 23, 2022
Question

Question about Schedule 540NR Column B if nonresident worked half year in CA and half yeat in WA

  • February 23, 2022
  • 1 reply
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I'm travel nurse with tax home at TN but worked for 6 months in CA and worked the rest 6 months in WA. I'm struggling to understand the column B in the schedule 540NR  which is defined as Subtractions (difference between California and federal law). So I read the schedule 540NR instruction from CA gov saying that "Do not use column B to deduct income that was earned while a nonresident of California or from sources outside of California. There must be a difference in state and federal tax law." However, if I make half of my income in WA, then it should be considered as the difference between federal and CA. When I use the Turbotax Home and Business, it left column B blank. Is that correct? I think I may need some explaination.

 

Thank you so much if someone can help.

 

 

1 reply

February 23, 2022

Yes. Column B should be blank. California taxes some types of income differently from the federal government. If you are a resident of Tennessee then your California income should be in Column E. 

 

If it's W-2 income, TurboTax will bring this over from line 16.

 

California and federal differences are items such as:

  • Combat zone extended to Egypt’s Sinai Peninsula
  • Moving expenses and reimbursements
  • Limitation on deduction of business interest
  • Limitation on employer’s deduction for fringe benefit expenses
  • Limitation on wagering losses
  • Sexual harassment settlements
  • IRC Section 965 deferred foreign income
  • Global intangible low-taxed income (GILTI) under IRC Section 951A
  • Qualified equity grants
  • Expanded use of 529 account funds
  • Living expenses for members of Congress
  • Limitation on state and local tax deduction
  • Mortgage & home equity indebtedness interest deduction
  • Limitation on charitable contribution deduction
  • College athletic seating rights
  • Casualty or theft loss(es)
  • Miscellaneous itemized deductions

For more info see California Adjustments - Nonresidents and Part-Year Residents

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