Definition of "from California sources" for 540NR. Are dividends from E*Trade considered "from CA sources?

Question

I have to file California state tax 540NR. Since I am not a CA resident I have to pay taxes on income "from CA sources". I have received interest and dividends from E*Trade. Is that "from CA sources"? How do I know if income shown on 1099DIV statements are from CA sources?

Answer 1

Investment and interest income is generally sourced to your state of residence unless it is income from a business. So, no, interest and dividends from e-trade are not sourced to CA in your case.

Answer 2

No, that won't be from CA sources. The only thing you'll include is your wages or other income directly earned in CA.