California part-year (540NR)

Resident 1/1-7/14, then Texas. What California may tax.

Preparer Priya Raman · due 2026-03-27

Reviewer Daniel Ortiz · due 2026-04-08

Partner Helen Strand

Time 0 of 1.5 h budget

California taxes residents on everything and nonresidents on California-source income. The household was resident 195 of 365 days. Form 540NR computes tax on all income (421,970 taxable at 0.0766) and applies that rate to California income: California AGI 305,349, taxable 267,822, total tax 18,874. The Oregon composite tax on the Woodworks income earns a credit of 844. California AMT on the July ISO exercise is not computed by the engine.

State split

Income	Federal (A)	CA law (D)	California-source (E)	Share	Method
Wages	212,400	218,400	218,400	100%	W-2 box 16 (engine) — check the move date
Interest	6,450	6,040	3,227	53%	resident days 195/365
Dividends	7,060	7,060	3,772	53%	resident days
IRA (taxable)	26	26	26	100%	conversions dated in CA residency
Capital gain	185,027	185,027	55,174	30%	sales dated in CA residency + pass-through by days
Schedule C	81,854	112,254	59,971	53%	resident days; CA depreciation add-back
Schedule E	-11,830	-12,314	-16,310	132%	Sacramento rental 100%; others by days + Ridgeline CA share
Total income		516,493	324,260
Adjustments		35,397	18,911		resident days

California-source figures in column E are engine values; workpaper adjustments to them flow into the California tax estimate through the engine's California-source rate (6.4% per dollar at v3).

Checks that don't trust the engine (2)

CA-WAGE-SOURCE · California part-year (540NR)

California wages limited to the resident period

Fails

Engine took W-2 box 16 at face value (107,100 + 111,300 = 218,400). California may tax 129,569. California withholding stays creditable in full.

Engine 218,400 · recomputed 129,569

How: Residency ended 2025-07-14 (household). Corvane: all wages earned in California (box 16 107,100). Halvorsen: paystub D73 shows CA taxable wages 22,469 through 07/15; payroll kept California as the work state until 09/30 by mistake (D09 note, qa-45).

Authority: Cal. Rev. & Tax. Code 17041(b), 17951; FTB Pub. 1031

Evidence: D09 · D73 · D08 · qa-45 · qa-03 · Lines: SchCA540NR.1.E

SchCA540NR.1.E 218,400 → 129,569 — Halvorsen wages after 07/14 are Texas-source.
Tax: fed 0 · CA −5,685

Explain / dismiss instead

CA-AMT · California part-year (540NR)

California AMT on the ISO exercise

judgmentNeeds judgment

ISO granted 03/2022 and exercised 07/30/2025 (after the move) for a 40,000 bargain element; California sources ISO income by days worked in California between grant and exercise (all of Corvane's service). A Schedule P computation is needed before filing.

How: Engine does not compute Schedule P (540NR).

Authority: Cal. Rev. & Tax. Code 17062; FTB Pub. 1004

Evidence: D12 · qa-06 · Lines: F540NR.61

Explain / dismiss instead

Documents (0)

Every line in this area (49)

Show all 49 lines

SchCA540NR.1.A	Wages - federal	212,400
SchCA540NR.1.C	Wages - CA additions	6,000
SchCA540NR.1.D	Wages - total using CA law	218,400
SchCA540NR.1.E	Wages - California amount	218,400
SchCA540NR.2.A	Taxable interest - federal	6,450
SchCA540NR.2.B	Taxable interest - CA subtractions	410
SchCA540NR.2.D	Taxable interest - total using CA law	6,040
SchCA540NR.2.E	Taxable interest - California amount	3,227
SchCA540NR.3.A	Ordinary dividends - federal	7,060
SchCA540NR.3.D	Ordinary dividends - total using CA law	7,060
SchCA540NR.3.E	Ordinary dividends - California amount	3,772
SchCA540NR.4.A	IRA distributions (taxable) - federal	26
SchCA540NR.4.D	IRA distributions (taxable) - total using CA law	26
SchCA540NR.4.E	IRA distributions (taxable) - California amount	26
SchCA540NR.7.A	Capital gain or (loss) - federal	185,027
SchCA540NR.7.D	Capital gain or (loss) - total using CA law	185,027
SchCA540NR.7.E	Capital gain or (loss) - California amount	55,174
SchCA540NR.12.A	Business income (Schedule C) - federal	81,854
SchCA540NR.12.C	Business income (Schedule C) - CA additions	30,400
SchCA540NR.12.D	Business income (Schedule C) - total using CA law	112,254
SchCA540NR.12.E	Business income (Schedule C) - California amount	59,971
SchCA540NR.17.A	Rental real estate, partnerships, S corporations - federal	-11,830
SchCA540NR.17.B	Rental real estate, partnerships, S corporations - CA subtractions	484
SchCA540NR.17.D	Rental real estate, partnerships, S corporations - total using CA law	-12,314
SchCA540NR.17.E	Rental real estate, partnerships, S corporations - California amount	-16,310
SchCA540NR.22.D	Total income using CA law	516,493
SchCA540NR.22.E	Total California income	324,260
SchCA540NR.26.D	Adjustments to income (half SE tax, SEP, SE health insurance)	35,397
SchCA540NR.26.E	Adjustments to income - California amount	18,911
F540NR.13	Federal AGI	445,590
F540NR.17	Total AGI using California law	481,096
SchCA540NR.A.itemized	California itemized deductions (no state income tax; no SALT cap)	59,126
F540NR.18	Deductions (larger of CA itemized or CA standard)	59,126
F540NR.19	Total taxable income	421,970
F540NR.31	Tax on total taxable income	32,328
F540NR.32	California AGI	305,349
F540NR.34	Deduction percentage (line 32 / line 17)	0.6347
F540NR.35	California taxable income	267,822
F540NR.36	CA tax rate (line 31 / line 19)	0.0766
F540NR.37	California tax before exemption credits	20,515
F540NR.39	Prorated exemption credits	797
F540NR.40	Regular tax	19,718
ScheduleS.credit	Credit for net income tax paid to Oregon (composite, resident-period share)	844
F540NR.61	Alternative minimum tax (Schedule P)	0
F540NR.64	Total tax	18,874
FTB3885A.SAC-APPL	California depreciation - SAC-APPL	484
FTB3885A.STU-PRINTER	California depreciation - STU-PRINTER	2,840
FTB3885A.STU-CAMERA	California depreciation - STU-CAMERA	3,260
FTB3885A.STU-WORKST	California depreciation - STU-WORKST	1,500

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