Staff Sergeant Powell is an active duty Marine stationed at Camp H. M. Smith, HI. He is domiciled in Washington. For 2018, his military pay was $39,000. He had $10,000 in gross rental receipts and $2,000 of allowable expenses from a rental property in California. He is single and does not have any dependents. Does Staff Sergeant Powell need to file a California return?

1- SS Powell needs to file a California return because he has California gross income greater than the filing requirement.

2-Since SS Powell is a military service member stationed outside of California, he is not required to file a California return.

3-Since the net rental income from the property is below California filing requirements, he does not have to file a California return.

4- Since the gross rental income from the property is below California filing requirements, he does not have to file a California return.