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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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I am a Texas resident and most of my income for 2009 is from

Resolved Question:

I am a Texas resident and most of my income for 2009 is from my business in Texas. However, I have a small amount($12500) from California. This amount is from my Deferred Compensation Plan from previous job in California. So I am filing CA540NR to pay taxes on this amount. However, Form CA540NR is calculating taxes based on Form 1040 line 37, which includes income from both CA and Texas.
What do I need to do so that I pay CA taxes on CA income only?
Thank you for your help.
Venkat M.
Submitted: 6 years ago.
Category: Tax
Expert:  Merlo replied 6 years ago.

Hello Venkat,


On California Schedule CA540NR, in column E of that form is where you enter your CA source income only.


On line 45 of that schedule, you will see where it asks you to bring down your total CA income from line 37, column E. That is the amount your tax is then figured on. Your tax is not calculated on your entire income from all states.


If this was helpful please press the Accept button.


Thank you Venkat



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