Easy Tax question? (transfer, calculating, incomes)

[Enot]

Sorry guys for a stupid tax question. But for non-residents it is rather tricky to understand CA tax law, especially when two countries tax laws are involved at the same time.

The question is rather simple, the answer perhaps for one of you too:

I was working as non-resident alien in CA until September last year. After leaving the US (where I had a wonderful time!) I started working in Germany.
I am now trying to do my CA taxes and do not know if my income from Germany (after leaving the US) has to be taken account for calculation of the CA tax rate. Of course it will not increase the CA taxable amount. Does anyone know if you get incomes from CA and another country if the foreign income is added to your global income in the CA taxes? Even if you are taxed for the income in the other country too?

I know that the CA does not accept the double taxation and in the end just can tax the money from CA sources. It has of course only influence on the CA tax rate.

Thanks a lot, but this topic is driving me nuts.

[mmouwse]

Try looking on the California State Website for answers to your tax qustions. You should be able to find a link to the state tax board or a state tax faq page or both!
Go to Welcome to the State of California and click on the tab on the front page entitled "working in CA". This will bring up subheadings including one on taxes as well as a faq page.
Hope this helps!!

[Enot]

Thanks a lot, but I was doing that already. I was looking so far in most of the instruction sheets given on the California State Website, in all the FAQs I found there and asking almost everybody I now in the States.

[Lovehound]

You pay taxes only on the money you earned in California. This is the amount that appears on your W-2 form under "state wages" or "CA wages." Contact your employer's HR department for details.

Even better if you had a different employer after you moved to Germany. If it is the same employer then you will need them to specify the wages paid in California.

However, it can get quite complicated, particularly if for example you worked for only one company and it is based in California, and you are now working overseas for that same California employer. If that's the case then you had better see a tax professional.

The simplest answer is that it's whatever amount that appears on your W-2 form. Good luck!

[Enot]

Thanks for the answer. Sorry to ask again, but just to get it the right way: I am aware that my taxable income is of course only income I got from CA sources. BUT what about the calculation of my CA tax rate: Here you have to use income of CA sources and other (like interest, ....). Does "other" include also my German income, even paying taxes here in Germany?

[suzie02]

I recently did my part-year resident taxes and I do not understand what you mean by "calculating CA tax rate". Which form are you using? What line are you stuck in?

[Lovehound]

Originally Posted by Enot

Thanks for the answer. Sorry to ask again, but just to get it the right way: I am aware that my taxable income is of course only income I got from CA sources. BUT what about the calculation of my CA tax rate: Here you have to use income of CA sources and other (like interest, ....). Does "other" include also my German income, even paying taxes here in Germany?

Your tax rate is based upon your adjusted gross income (AGI). On your California taxes this will include only California income.

First you fill out Form 540CA "California Adjustments" then fill out the main 540 form. By the time the figures get transferred from 540CA to 540 there is only California income included.

German income is NOT included. Interest income may or may not be included, depending on the particulars.

[Enot]

I am still stuck in the audition calulcation:

For the AGI in the California Adjustment Sheet CA (540NR) in the Part II Income Adjustment Table do I have to put my foreign income in line 21 C or not?

Thanks again!

[Enot]

I still do not understand if my foreign income (which I earned after leaving the US) is changing my CA tax rate.

[Lovehound]

1.) It is NOT an "easy tax question" (your topic title).

2.) Even a tax preparer would find it difficult to answer your question without more information, including your W-2 forms.

3.) C-D is definitely a poor place to get tax advice. I suggest you should at least try to find some sort of tax questions forum and ask your question there.