Should I file as CA 540 or 540NR? Am military & home of record, domicile, and residency are all CA, but was stationed in MD on PCS in 2017. TT wants to select 540NR. (2024)

Should I file as CA 540 or 540NR? Am military & home of record, domicile, and residency are all CA, but was stationed in MD on PCS in 2017. TT wants to select 540NR. (1)

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Within TT, when I choose Legal Residence CA and Stationed MD, and yes to PCS outside CA, it recommends CA Form 540NR. But keep seeing conflicting information on TT forum answers that I should be filing as CA Form 540. If I force TT to select CA Form540, it then doesn't exclude military wages.

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‎June 1, 20198:40 AM

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Should I file as CA 540 or 540NR? Am military & home of record, domicile, and residency are all CA, but was stationed in MD on PCS in 2017. TT wants to select 540NR. (2)

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Should I file as CA 540 or 540NR? Am military & home of record, domicile, and residency are all CA, but was stationed in MD on PCS in 2017. TT wants to select 540NR.

When military member's HoR is Calif and stationed outside Calif on PCS, they become Calif nonresidents for tax purposes. Unless you had some non-military income in MD (second job there, or whatever) then you have no state tax liability at all - to any state. MD can't tax your military pay because your HoR is Calif, and Calif can't tax it because you are a Calif nonresident (for tax purposes).

See California's publication 1032, Tax Information for Military Personnel, here
https://www.ftb.ca.gov/forms/2017/17_1032.pdf
You can find your situation in one of the examples listed in there.


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‎June 1, 20198:40 AM

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Should I file as CA 540 or 540NR? Am military & home of record, domicile, and residency are all CA, but was stationed in MD on PCS in 2017. TT wants to select 540NR. (4)

TerryA

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Should I file as CA 540 or 540NR? Am military & home of record, domicile, and residency are all CA, but was stationed in MD on PCS in 2017. TT wants to select 540NR.

When military member's HoR is Calif and stationed outside Calif on PCS, they become Calif nonresidents for tax purposes. Unless you had some non-military income in MD (second job there, or whatever) then you have no state tax liability at all - to any state. MD can't tax your military pay because your HoR is Calif, and Calif can't tax it because you are a Calif nonresident (for tax purposes).

See California's publication 1032, Tax Information for Military Personnel, here
https://www.ftb.ca.gov/forms/2017/17_1032.pdf
You can find your situation in one of the examples listed in there.


‎June 1, 20198:40 AM

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Should I file as CA 540 or 540NR? Am military & home of record, domicile, and residency are all CA, but was stationed in MD on PCS in 2017. TT wants to select 540NR. (5)

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Should I file as CA 540 or 540NR? Am military & home of record, domicile, and residency are all CA, but was stationed in MD on PCS in 2017. TT wants to select 540NR.

Thanks. Ended up reviewing FTB Pub 1032 Section D examples of resident status and also Section F income subject to CA tax for nonresident military personnel with CA domicile.

‎June 1, 20198:40 AM

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Should I file as CA 540 or 540NR? Am military & home of record, domicile, and residency are all CA, but was stationed in MD on PCS in 2017. TT wants to select 540NR. (6)

Karen1209

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Should I file as CA 540 or 540NR? Am military & home of record, domicile, and residency are all CA, but was stationed in MD on PCS in 2017. TT wants to select 540NR.

Thestate residency information is populated from your My Info input. As active duty military,you are considered working in another state while living in CA.

Followthese steps:

  • While in your return, clickMy Infoon the left menu.
  • Click Editto the right of your name.
  • When asked if you lived in another state, clickNo (see attachment).

‎June 1, 20198:40 AM

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Should I file as CA 540 or 540NR? Am military & home of record, domicile, and residency are all CA, but was stationed in MD on PCS in 2017. TT wants to select 540NR. (7)

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Should I file as CA 540 or 540NR? Am military & home of record, domicile, and residency are all CA, but was stationed in MD on PCS in 2017. TT wants to select 540NR.

Already did that.

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