This week, we’re covering the “California method” of taxing the California-source income of nonresidents, which is not a straightforward application of tax rate. It’s also something that taxpayers frequently (and unsuccessfully) argue against in tax appeals.
California taxes residents on income from all sources, but what exactly constitutes a resident? It’s not as cut and dried as you’d think!
The FTB sent out withholding mismatch notices to certain taxpayers, and we have some more information on how to deal with those notices and how FTB is handling the mismatch problem.