Skip to main content

Legal

Tax & Accounting

Trade & Supply

Risk & Fraud

News & Media

Books

Developers

Help articles

Non-resident wage exclusion

For part-year and non-residents of California, the application excludes the amount you enter in the W-2 box
1, Wages, tips
 from wages income on Schedule CA (540NR), line 1 when:
  • The wage code on the W-2 is
    2, Military
    .
  • The domicile of the recipient you entered in the
    CANRPY
     screen, in the
    General
     folder, is outside California.
  • You've entered the
    State in which stationed
    .
According to state instructions, federal adjusted gross income is adjusted to exclude exempt wages for state calculations.
Wages that you give a California ZIP Code are excluded from
California source income
 on Schedule CA (540NR), line 1, column E for the taxpayer or spouse identified on the
CANRPY
 screen as the qualified nonresident spouse of a military member.
For resident returns, use
State use
 code
5, Excludable from total sources: CA
 on the federal
W2
 screen, box 15 to indicate wages earned while living on an Indian Reservation that are excludable from income. Wages coded as excludable are subtracted on Schedule CA (540), line 1.
According to state instructions, federal adjusted gross income isn't adjusted for state calculations.
Chat now

error-icon

Triva isn't available right now.

Check out the support page for our phone number and hours

error-close