Ok. Non-residents who have California-source income have to file/pay California income tax on it. However, pension/retirement income arising in California is exempt from taxes for non-residents. As there is no tax due on the pension income, I wonder if one has to file the forms every year to report it, or not? I can, of course, try to reach the Franchise Tax Board on Tuesday (Monday is MLK Day so everything is shut). But if someone else knows...?
Edit: Answer found. No.
The following kinds of California income are not subject to California tax for non-residents:
Investment income such as interest, dividends, and capital gains from stocks or bonds. Generally, these are considered to have their source where you are a resident. (However, if investment accounts are used in a trade or business located in California, or pledged as security for a loan and the loan proceeds are used in California, then you must file a California income tax return and report the income from these accounts.)
A California retirement plan distribution to a non-resident is not subject to California tax. Since 1995, non-residents are not taxed by California on California-sourced pensions, lump sums from qualified plans, and IRAs. (Federal Law)
If all of your California income falls into one or both of these kinds of income, as a non-resident, you do not have to file a California tax return.
