CA part-year resident question

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Posted by Arvind on May 29, 2009, 11:26 am Please log in for more thread options Hi, I moved to California in the middle of last year and it looks like I will have to file as a part-year resident.   I have a question on how to calculate the California adjusted gross income from my federal income and would appreciate your inputs. In particular, while calculating the California adjusted gross income, how should I deal with my 1099-INT & 1099-DIV incomes? Not all of it was earned when I was in California.  Should I just include the parts earned when I was in California or the entire amount? If only partial amount is to be counted, can I use an approximate calculation like spent 50% of time in CA, so 50% of 1099-INT income was earned while in CA? Thanks, Arvind -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used,   >> << nor can it used, for the purpose of avoiding penalties  >> << that may be imposed upon the taxpayer.                  >> <<                                                         >> <<   The Charter and the Guidelines for submitting posts   >> <<  to this newsgroup as well as our anti-spamming policy  >> <<                  are at www.asktax.org.                 >> <<         Copyright (2007) - All rights reserved.         >> << ------------------------------------------------------- >> Posted by D. Stussy on May 29, 2009, 8:28 pm Please log in for more thread options > I moved to California in the middle of last year and it looks like I > will have to file as a part-year resident.   I have a question on how > to calculate the California adjusted gross income from my federal > income and would appreciate your inputs. > In particular, while calculating the California adjusted gross income, > how should I deal with my 1099-INT & 1099-DIV incomes? > Not all of it was earned when I was in California.  Should I just > include the parts earned when I was in California or the entire > amount? > If only partial amount is to be counted, can I use an approximate > calculation like spent 50% of time in CA, so 50% of 1099-INT income > was earned while in CA? Technically, it should be split between the amount accrued/received before you moved and the amount after.  You should hve band and brokerage statements that tell you when these things were paid to your accounts (or over which period they accrued, if that's your accounting method). -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used,   >> << nor can it used, for the purpose of avoiding penalties  >> << that may be imposed upon the taxpayer.                  >> <<                                                         >> <<   The Charter and the Guidelines for submitting posts   >> <<  to this newsgroup as well as our anti-spamming policy  >> <<                  are at www.asktax.org.                 >> <<         Copyright (2007) - All rights reserved.         >> << ------------------------------------------------------- >> Posted by Mark Bole on May 29, 2009, 9:11 pm Please log in for more thread options In addition to D. Stussy's comments, >> I moved to California in the middle of last year and it looks like I >> will have to file as a part-year resident.   I have a question on how >> to calculate the California adjusted gross income from my federal >> income and would appreciate your inputs. >> >> In particular, while calculating the California adjusted gross income, >> how should I deal with my 1099-INT & 1099-DIV incomes? Be sure to use the correct form, 540NR, and Schedule CA(540NR).  Before calculating your California AGI, you also need to know your total AGI according to California tax law, in order to determine your tax rate. The "AGI" part can be misleading. >> Not all of it was earned when I was in California.  Should I just >> include the parts earned when I was in California or the entire >> amount? Interest and dividend income (from intangible investments) is normally sourced at the residence of the taxpayer, so what you received while a California resident would be subject to tax by California.  However, everything you received during the year from all sources would figure into the calculation of your California tax rate. -Mark Bole -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used,   >> << nor can it used, for the purpose of avoiding penalties  >> << that may be imposed upon the taxpayer.                  >> <<                                                         >> <<   The Charter and the Guidelines for submitting posts   >> <<  to this newsgroup as well as our anti-spamming policy  >> <<                  are at www.asktax.org.                 >> <<         Copyright (2007) - All rights reserved.         >> << ------------------------------------------------------- >> Posted by Katie on June 5, 2009, 3:28 pm Please log in for more thread options > Hi, > I moved to California in the middle of last year and it looks like I > will have to file as a part-year resident.   I have a question on how > to calculate the California adjusted gross income from my federal > income and would appreciate your inputs. > In particular, while calculating the California adjusted gross income, > how should I deal with my 1099-INT & 1099-DIV incomes? > Not all of it was earned when I was in California.  Should I just > include the parts earned when I was in California or the entire > amount? > If only partial amount is to be counted, can I use an approximate > calculation like spent 50% of time in CA, so 50% of 1099-INT income > was earned while in CA? > Thanks, All of your interest and dividend income is included in Schedule CA (540NR), Col. D (total income from all sources).  In Col. E (California source income). you would include only interest and dividend income received or made available to you during the part of the year when  you were a California resident. If the accounts were held all year and the income received more or less evenly over the year, you can just prorate by the months or weeks.  Otherwise, the statements from the payers should tell you when the interest and dividends were credited to your accounts. Katie in San Diego -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used,   >> << nor can it used, for the purpose of avoiding penalties  >> << that may be imposed upon the taxpayer.                  >> <<                                                         >> <<   The Charter and the Guidelines for submitting posts   >> <<  to this newsgroup as well as our anti-spamming policy  >> <<                  are at www.asktax.org.                 >> <<         Copyright (2007) - All rights reserved.         >> << ------------------------------------------------------- >> This Thread        Yahoo!   Google   Windows Live   del.icio.us   digg   Netscape CA part-year resident question Arvind 05-29-2009  Re: CA part-year resident question D. Stussy 05-29-2009  Re: CA part-year resident question Mark Bole 05-29-2009  Re: CA part-year resident question Katie 06-05-2009 Related Posts Subject Date Non Resident filing question February 5, 2007, 8:22 pm question about Non Resident (NRA) tax withheld April 12, 2008, 4:59 pm NYS "resident credit" (it-112) income question March 22, 2009, 6:24 pm SIMPLE QUESTION RE: NJ INCOME TAX FOR TOTAL NON-RESIDENT April 12, 2007, 12:25 am Relatively simple question: Michigan Resident, New York Inte... November 29, 2007, 5:54 pm CA resident with part year resident spouse March 15, 2009, 1:47 pm Illinois resident/non resident and schedule NR April 9, 2007, 2:51 am Re: Non-resident vs. Part-year Resident March 12, 2005, 7:24 am Re: Non-resident vs. Part-year Resident March 12, 2005, 8:41 am Re: Non-resident vs. Part-year Resident March 12, 2005, 9:19 am Re: question about NY state resident status for NY state tax... 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