Should a small out of state income (<$500) be excluded from California income in the CA State Filing?

Forum|Forum|2 years ago
March 21, 2024
1 reply
0 views

For a California resident who earns major income in California, but a very small income (<$500) in another state, should the small "out of state income" (<$500) from his total AGI be excluded in his California tax filing? If the answer is yes, how can he exclude the small "out of state income" from his California state tax in Turbo Tax? Thanks!

DavidD66

No, as a California resident, California taxes 100% of your income regardless of the state in which it was earned. If you file a non-resident tax return for the other state to report that income and have to pay tax to that other state then California will issue you a credit for tax paid to other states. This is the way all states with an income tax treat income earned in other states by residents.

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