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Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

For part-year and nonresidents of California, the application automatically excludes the amount entered in W2 box 1, Wages, tips, from wages income on Schedule CA (540NR), line 1 when the wage code on the W-2 is 2, Military and the domicile of the recipient entered in Screen CANRPY, in the General folder, is outside California, and State in which stationed is entered. Per state instruction, federal adjusted gross income is adjusted to exclude exempt wages for state calculations.

Wages postal coded to California are automatically excluded from California source income on Schedule CA (540NR), line 1, column E for the taxpayer or spouse identified in Screen CANRPY as the qualified nonresident spouse of a military member.

For resident returns, use State use code 5, Excludable from total sources: CA, in federal Screen W2, box 15 to indicate wages earned while living on an Indian Reservation that are excludable from income. Wages coded as excludable are subtracted on Schedule CA (540), line 1. Per state instructions, federal adjusted gross income is not adjusted for state calculations. 

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