Have a Tax Question? Ask a Tax Expert
Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything you don't understand
Did you have any CA income tax withheld in 2008 on your W2?
Yes, I had $1646 withheld for CA income taxes.
What did you do with that, anything? Claim it on your Colorado return?
Well, I'm looking at my 08 taxes and it appears that I added the $1647 to my federal taxable income (line 2 of CO form 104- state income tax deduction) and then paid taxes on this amount. I'm so confused... thats what I get for using Turbotax.
Well, if you worked in Colorado, technically you don't owe CA anything & would file a non-resident return to get the money back.
However with the W2 prepared the way it is, & the CA withholding you may want to file a non-resident return in CA;
Really? Its that easy? I just fill out a form 540NR and I will get the $1647 back? And more importantly off the CA Franchise Tax boards bad list?
Of course, you would have to amend your Colorado return to claim a credit for the taxes paid to California
OK, to confirm.... I will file a non resident return for CA and will get the $1647 back.
Then I will amend my CO taxes claiming the credit?
Then you would have to file an amended federal return to take out the income you put in related to the CA taxes
No, just a minute I have a call from CA
No. What I was saying was to pay the tax to CA (because of the W2) & then get a credit in Colorado for the taxes paid to CA; you're a resident of Colorado, so you have to file in Colarado
You may need to get a CPA to straighten this out for you;
So the notice I received today is that I owe CA $2900. So you are saying to pay this amount and then amend my CO 08 taxes? I think you are probably right about the CPA, this is way over my head.
No, don't pay that; you probably don't owe that much
Thanks for your guidance! I'm going to make an appointment with a CPA.