1099 that CA wants to tax - Spidell

1099 that CA wants to tax

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Message Board 1099 that CA wants to tax

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    • #266432
      Cronan Otto

      I have a client who received a 1099-Misc for Nonemployee compensation from 2017 with an old CA address (she has been a Texas Resident since 2015/2016). The CA Franchise Tax Board is trying to tax her on that amount. I just spoke with the CA FTB and they said it is CA law that any income that is generated from a CA company, is taxable in CA, even if the work is performed outside of CA.

      Does anyone have any expertise in this area? Possibly a CA CPA. I was under the impression that if the work was performed in Texas (consulting work), it wouldn’t be taxable in CA.

    • #266520
      Lynn Freer

      I assume this is for services performed. So, yes the FTB is correct. Since 2013, the law requires a nonresident to file a return and pay tax on income paid for services paid to a non CA company if the benefit of the service was received in CA. Our nonresident on demand webinar as well as the Big Blue Answer Book discuss this

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