CA Requirement and Forms

Question 1

Who must file in the state of CA?

Answer 1

1) Either CA Gross income/his CA AGI was more than the amount shown for his filing status, age, and number of dependants;
2) If he has a tax liability for 2021;
3) owes any taxes regarding lump-sum, Qualified retirement plan , kiddie-tax, alternative minum tax, recapture tax ,deffered tax on certain installment obligations, and accumulated distribution from a trust tax.

Question 2

Can a taxpayer elect to report theit child’s income?

Answer 2

Yes, if the income was 11,000.00 or less, but not less than $1,100.00 on their tax return by completeing Form FTB 3808.

Question 3

What is form FTB 3803?

Answer 3

Parent’s election to Report Child’s Interest and Dividends.

Question 4

If Parent does not elect to report Child Investment income, how should the child file?

Answer 4

Each child with investment income in excess of $2,200.00 must file a return that includes the FTB 3800.

Question 5

What is form FTB 3800?

Answer 5

Tax Computation for Certain Children with Unearned Income in their Tax Return. *Kiddie-tax.

Question 6

What is the Federal Equivelent of FTB 3803?

Answer 6

Form 8814, “Parents election to report Child’s Interest and Dividends.”

Question 7

What is the Federal Equivelent of FTB 3800?

Answer 7

Form 8615, “Tax for Certain Children who have Unearned Income.”

Question 8

Who is eligible for a CA refund?

Answer 8

• Made estimated tax payments to CA;
• Had state income tax withheld from earnings;
• Paid real estate witholdings tax;
• Had excess CA SDI/VPDI, had two/more employers during 2021, and received more than 128,298 in wages.
  -Had earned income and qualifies to claim CA EITC.

Question 9

If you file a return or claim a refund for a deceased person, you must be:

Answer 9

• A suviving spouse/RDP (Must file a Joint Return)
• a surviving relative
• a sole beneficiary
• Legal rep. of the estate

Question 10

For an estate /Trust, the return must be filed within:

Answer 10

3 1/2 months after the close of the month in which the estate or trust was terminated.

Question 11

Does CA Tax all state and municipal bond interest?

Answer 11

No, only from non-CA sources.

Question 12

Can Tax payers file a 540 2EZ if they have income from sources outside of CA?

Answer 12

No, income from outside of CA must be reported on a 540 form.

Question 13

What is a 540NR?

Answer 13

CA Non-resident tax form for when the tax payer resided in CA for only part of the tax year, or was not a resident at all, but had CA source income.

Question 14

What is World-wide Income?

Answer 14

Non-CA Income Sources.

Question 15

Do residents get taxed on all types of income? If so, which kind?

Answer 15

Income from residing in CA and Worldwide income.

Question 16

Does CA allow a credit for worldwide income?

Answer 16

Yes, CA gives a credit for tax on non-CA income to prevent double taxation.

Question 17

Do part-year residents get taxed on all income as well?

Answer 17

Yes, they are taxed on all income earned while a resident of CA and income form CA sources while a nonresident (For 540NR).

Question 18

Do nonresidents get taxed on income from CA?

Answer 18

Yes, but only on income from CA sources.

Question 19

How is 540NR used?

Answer 19

It is used to divide total CA income by the total worldwide income to calculate the CA Ratio. Then, the Taxpayer calculates the tax on his worldwide income on schedule CA (540NR) as thought he was a resident. Then, the taxpayer multiplies the tax by the CA ratio.

Question 20

If TP did not reside in CA during the Tax Yr but receieved income from a CA income source:

Answer 20

he is a NR (540NR) or part-yr. Resident Income Tax Return.

Question 21

If TP spends more than 9 months in CA in a Tax Yr.:

Answer 21

He will be presumed a CA resident.

Question 22

If TP stays in CA for other than temporary/transitory purpose:

Answer 22

CA resident. Income is taxable by CA.

Question 23

What is a part year resident?

Answer 23

a TP that moved in or out of CA during the Tax Yr. but recieved income from a CA source, he is a NR of CA and should file a CA NR Part-year Resident (540NR).

Question 24

What is Safe Harbor?

Answer 24

TP who lives in CA under employment-related contracts for an uninterupted period of 546 consecutive days are considered Non-Residents.

Question 25

What can disqualify you from Safe Harbor?

Answer 25

TP has intangible income (stocks, bods, and notes) exceeding $200,000.00 in any taxable year covered by the employment related contract.

Primary reason for leaving CA is to avoid personal income tax.

TP makes temp return visits to CA that total more than 45 days in any tax yr. during which employment-related contract is in effect.

Question 26

Does safe harbor cover Spouse?

Answer 26

Yes, as long as spouse is accompanying TP outside of CA for a minimum of 546 consecutive days, the spouse will also be considered a NR of CA.