California Non-Resident return

bigtalltree · Post by **bigtalltree** » Fri Apr 12, 2013 3:23 am

I'm a Canadian resident. I worked for 8 days in California as a contractor (1099-MISC, nothing withheld). I have to file a 540NR because of that. I know that I have to include my worldwide income on that return. Can I deduct costs/expenses for my worldwide income incurred in Canada?

nelsona · Post by **nelsona** » Fri Apr 12, 2013 6:35 am

How do you "know" this? An NR return implies reporting ONLY state-sourced income. That would be the 1099. period. you do not need to file a 1040. at worst you need to fil1 a 1040NR to get any tax back, since you were not taxable federally by treaty.

Your Cdn return will show world income, as a contractor (self-employed) you are eligible to deduct whatever expenses are allowed by Cdn rules.

I wouldn't bother deductiong anything on my US returns.

bigtalltree · Post by **bigtalltree** » Fri Apr 12, 2013 1:30 pm

https://www.ftb.ca.gov/forms/misc/1100.pdf Section B states "you determine your California tax by multiplying your California taxable income by an effective tax rate"

nelsona · Post by **nelsona** » Fri Apr 12, 2013 3:36 pm

Right. It merely means you USE your world income to come up with a percentage (on schedule CA), not "include" your world income on your cali return (540NR).

As I said, don't bother with any elaborate deductions. whatever tax you calculate, send to Cali, and use this as a credit on your Cdn return.