Question
After 28 years of service with the State of California, Lucy retired in January of 2018 and moved to Nevada on May 15. Her income
After 28 years of service with the State of California, Lucy retired in January of 2018 and moved to Nevada on May 15. Her income was $3,900 a month from her state pension (paid on the last day of each month) and $1,200 in interest from a savings account in a California bank ($420 received while in California and $780 after moving to Nevada). Which of the following is correct?
Lucy's part-year California return (Form 540NR) should show $16,020 California-source income. ($15,600 income, from her pension and $420 interest credited to her savings account while a California resident.)
Lucy's part-year California return (Form 540NR) should show $47,220 California-source income, because her state pension is from a California source. ($46,800 California pension plus $420 interest.)
Lucy's part-year California return (Form 540NR) should show $48,000 California-source income, because both her pension and her interest have a California source. ($46,800 California pension plus $1,200 interest from the California savings account.)
Lucy does not need to file a California return, since she became a nonresident during the year.
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