How do I determine if S owes California tax?

<p>We live in a state with no income tax. S is attending school in California. He is our dependent for taxes and FAFSA. His summer earnings in our home state + work study earned in California + taxable portion of his grants/scholarships are enough for him to owe federal tax. (Though each item separately is not.) The college did not withhold any tax from his work study income. How do I find out if he owes California any state tax on his work study and/or grant income?</p>

<p>This website covers taxes for non-residents of California.</p>

<p><a href="https://www.ftb.ca.gov/forms/2011/11_540nrbk.pdf%5B/url%5D"&gt;https://www.ftb.ca.gov/forms/2011/11_540nrbk.pdf&lt;/a&gt;&lt;/p>

<p><a href="https://www.ftb.ca.gov/forms/2011/540nr_table_of_contents.shtml%5B/url%5D"&gt;https://www.ftb.ca.gov/forms/2011/540nr_table_of_contents.shtml&lt;/a&gt;&lt;/p>

<p>he'll need to apportion his income by state. Thus, he can exclude his home state summer earnings, which will not be taxable in California.</p>

<p>So you are saying California can tax both his work study income AND his need based grants above qualified (tuition/fees/books) expenses? I just want to get it right. Thanks.</p>

<p>DD went to college in CA. She had earnings there but not here. She did have to file CA taxes but she NEVER had to pay anything to CA.</p>

<p>This presentation from U of Davis will answer your questions. It pertains to mainly foreign students but is equally applicable to US citizens who are not residents of california</p>

<p><a href="http://www.google.com/url?sa=t&rct=j&q=is%20scholarships%20taxable%20income%20in%20california&source=web&cd=6&sqi=2&ved=0CEgQFjAF&url=http%3A%2F%2Fsiss.ucdavis.edu%2Fdocuments%2F2011Foreign%2520scholars%2520.pptx&ei=W542T9S4CMblsQKN8PjzAQ&usg=AFQjCNFhBY6DhJmj4YZU8Dw6OFHYDd3H1w&cad=rja%5B/url%5D"&gt;http://www.google.com/url?sa=t&rct=j&q=is%20scholarships%20taxable%20income%20in%20california&source=web&cd=6&sqi=2&ved=0CEgQFjAF&url=http%3A%2F%2Fsiss.ucdavis.edu%2Fdocuments%2F2011Foreign%2520scholars%2520.pptx&ei=W542T9S4CMblsQKN8PjzAQ&usg=AFQjCNFhBY6DhJmj4YZU8Dw6OFHYDd3H1w&cad=rja&lt;/a&gt;&lt;/p>

<p>
[quote]
Taxable income:
Wages/Salary Payments, including
Fellowships, teaching and research assistantships
Amounts received from foreign employers</p>

<p>Fellowship, Stipend, and Scholarship amounts not used for payment of tuition and fees or books, supplies and equipment required for courses of instruction

[/quote]
</p>

<p>So yes, you son will have to report on CA taxes on all scholarships above qualified expenses. However that does not mean he has to pay taxes. It depends on the amount. And that is the key difference. So he needs to file CA taxes as part time resident and go from there as to how much tax he needs to pay (if any).</p>

<p>^^Spot-on, maze.</p>