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  #1  
Old 04-07-2009, 08:39 PM
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Join Date: Mar 2008
Posts: 3

California state income tax rule for money earned in another state


What is the name of your state (only U.S. law)? CA

Dear Sir,
Last year, I worked in MN state for 3 weeks(Feb 18 to March 10).Remaining part of of the year ( before and after) I worked in California state.
While preparing my state income tax return, my consultant considered the earning in MN as money earned in California .He asked me pay for those three weeks income to CA and ask for the claim for the tax, which is already deposited by my employer to MN state govt.
His point is - since I stayed in MN for less than 30 days, i can not be considered as resident of MN.And the amount earned by me in those days, will be considered as CA money and I should pay to CA only for the whole year.
I am not sure , if it is a correct assumption.If not, what is the course of action available for me ? I do not want to be defaulter for either MN or CA govt.
At the same time, in this tough economic situation, I can not afford to pay at both the places.

Since he has already filed the tax return by eFiling asked me to send hard copy by mail alongwith the check, what should I do ? Can I file again electronically as an amendment ?
Thanks,
Vijay
  #2  
Old 04-07-2009, 08:53 PM
Senior Member
 
Join Date: May 2004
Posts: 41,298
Quote:
Originally Posted by vsthakur1 View Post
What is the name of your state (only U.S. law)? CA

Dear Sir,
Last year, I worked in MN state for 3 weeks(Feb 18 to March 10).Remaining part of of the year ( before and after) I worked in California state.
While preparing my state income tax return, my consultant considered the earning in MN as money earned in California .He asked me pay for those three weeks income to CA and ask for the claim for the tax, which is already deposited by my employer to MN state govt.
His point is - since I stayed in MN for less than 30 days, i can not be considered as resident of MN.And the amount earned by me in those days, will be considered as CA money and I should pay to CA only for the whole year.
I am not sure , if it is a correct assumption.If not, what is the course of action available for me ? I do not want to be defaulter for either MN or CA govt.
At the same time, in this tough economic situation, I can not afford to pay at both the places.

Since he has already filed the tax return by eFiling asked me to send hard copy by mail alongwith the check, what should I do ? Can I file again electronically as an amendment ?
Thanks,
Vijay
You should be filing a full year CA resident return for all of the income, and a non resident return for MN for the income that you earned in MN. If your tax preparer doesn't know how to do that, then you need a different tax preparer.

Your CA return needs to be amended and mailed in. Your MN return will possibly need to be mailed as well.
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