Chief Petty Officer CPO Jennifer Zan was raised on an Indian

Chief Petty Officer (CPO) Jennifer Zan was raised on an Indian reservation in California from where she joined the military after high school. She is now stationed at Ft. Hunter Liggett, Ca. Although her domicile is the reservation, she is a California resident. Does CPO Zan have to file a California return and if so, how does she report her income?

CPO Zan files a Ca 540 return and pays tax on her military income

No return is required to be filed.

CPO Zan files a 540NR form and subtracts her military wages in Column B, line 7 of Ca 540NR

CPO Zan files an information only copy of Schedule Ca(540NR)

Solution

Answer :- Option c). CPO Zan files a 540NR form and subtracts her military wages in Column B, line 7 of Ca 540NR.

Explanation :- Chief Petty Officer (CPO) Zan will file 540NR form and subtracts her military wages in Column B, line 7 of Ca 540NR.