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Level 2
April 11, 2023

California Non-Resident Return Required for Washington S-corp with CA source income?

  • April 11, 2023
  • 1 reply
  • 8 views

Had an individual come to me who is a resident of Alaska and an owner in a Washington S-corp.  The S-corp has income apportioned to California due to services performed in California and an employee in California and received a CA K-1.  I'm not familiar with California, but individual came to me for consult because his tax preparer told him he had to file as a California non-resident for the  CA pass-through share of items and individual's stance is that is not the case.  I've poured through FTB materials and am not confident enough to answer.  Anyone willing to lend advice?

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1 reply

sjrcpa
Level 15
April 11, 2023

If the S Corp K-1 has CA source income, I see no reason why your client should not file a CA nonresident return.

The more I know the more I don’t know.