CA part-year resident question

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

Reply to
Arvind
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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).

Reply to
D. Stussy

In addition to D. Stussy's comments,

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.

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

Reply to
Mark Bole

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

Reply to
Katie

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