What California Form 540NR (2015) Is For
California Form 540NR is used when a taxpayer is a nonresident or part-year resident and must report income connected to California. The form separates total revenue from the portion earned in the state, so tax is applied only to California-source income. It also uses an effective tax rate based on statewide rules for the 2015 filing year. Many filers use this form when they lived outside California or moved during the year, especially when the filing deadline falls near a business day or holiday.
When You’d Use California Form 540NR (2015)
You would use California Form 540NR if you lived outside California during 2015 and earned income from California sources, or if you moved into or out of the state during the year. Nonresidents must file when they have California-source income that meets the state’s filing thresholds. Part-year residents must file when their income for the months they lived in California meets the requirements in the Franchise Tax Board filing charts.
You may also need this form when correcting a previous filing. Amended 2015 returns are completed through Form 540X, which requires the attachment of a revised Form 540NR. If you missed the original due date, you may still file a late return; however, interest will apply from the 2015 deadline. Extensions for the 2015 tax year were available through Form FTB 3519, though the extension covered only the filing date, not the payment date.
Key Rules or Details for the 2015 Tax Year
Several rules guide who can use the Short Form version of Form 540NR for the 2015 tax year. These guidelines help determine whether you qualify and how your income should be reported.
To qualify for the Short Form, you must meet every requirement listed below:
- Your total income for 2015 must be $100,000 or less
- Your income must come only from simple sources, such as wages, interest, unemployment benefits, or paid family leave.
- You must use the standard deduction rather than itemized deductions.
- You must have five or fewer dependents
- Your withholding must only be reported on forms that show California tax withholding.
- You must be eligible for a limited set of credits, including personal, senior, and dependent exemption credits
Other important details include:
- Residency dates must be listed accurately, as they determine whether income is taxed as resident or nonresident.
- California-source income includes wages earned in the state, rental income from California property, and income from business activity completed in California.
- Military members and spouses may follow separate rules outlined in FTB Pub. 1032.
- Head of household filers must attach Form FTB 3532, or the Franchise Tax Board may deny the filing status.
Step-by-Step (High Level)
- Confirm the proper form: Make sure your situation fits the Short Form 540NR rules and that you do not need the Long Form 540NR.
- Gather your records: Collect W-2s and 1099s showing California taxes withheld, proof of California-source income, and a copy of your federal tax return.
- Complete personal details: Enter your name, address, Social Security number, and accurate residency dates for the 2015 year.
- Choose your filing status: Select the status that matches your situation, such as single, married filing jointly, or head of household.
- Report income: First, enter your total income from all sources, then enter only the portion sourced to California on the California tax return.
- Calculate tax: Follow the instructions to figure California AGI, apply the California ratio, and use the tax tables to compute taxes.
- Apply credits and payments: Enter exemption credits, withholding, and any estimated tax payments to ensure your balance or refund is accurate.
- Review, sign, and file: Verify your math and attachments, sign the return, and submit it by mail or through an approved e-file provider.
Common Mistakes and How to Avoid Them
- Incorrect residency dates can lead to errors in the California ratio. Check travel records, lease dates, or employment documents to confirm the exact dates you lived in California.
- Putting income in the wrong column often affects part-year resident amounts and the final tax calculation. List only California-source income in the California column and compare entries with your federal tax return.
- Using the Short Form when the Long Form 540NR is required can delay processing. Review the eligibility rules and switch forms if you had income beyond wages, interest, or unemployment.
- Forgetting required schedules, such as Schedule CA (540NR) when adjustments apply, may lead to penalties. Check the instructions and confirm that all necessary schedules are attached before filing.
- Overlooking withholding or missing estimated tax payments can create balance-due issues. Verify all withholding against W-2s and 1099s and match any estimated tax payments to the records held by the California Franchise Tax Board.
What Happens After You File
After you submit your California tax return, the Franchise Tax Board reviews your entries and verifies your income, withholding, and your reported California AGI. Processing is faster for e-filed returns, while paper returns can take longer, especially around weekends or holidays. Refunds are issued by direct deposit or check, depending on the option you choose.
If something does not match state records, the FTB may send a notice requesting more details. Corrections may also require filing Schedule X. If you missed the original 2015 deadline, interest applies from that date, even if an extended due date was available.
FAQs
How do I know if I’m a nonresident or part-year resident for 2015?
Your status depends on where you lived and worked during the year, as defined in the California Revenue and Taxation Code (R&TC).
What counts as California-source income for nonresidents?
California-source income can include wages earned in the state and rental real estate income from California property.
Can I use the short form if I worked remotely for a California employer?
If you performed all your services outside the state, your wages might not qualify as California-source income; FTB Pub. 1031 explains these sourcing rules.
Do military service members need to file a California Form 540NR?
Military pay is usually not taxed by California when domicile is in another state, and FTB Pub. 1001 provides the detailed guidelines.
What if I’m under the filing threshold but received California-source income?
You may still need to file if your California-source income meets the state’s filing rules, even after considering any federal deduction.
