Bill > AB1518

This bill extends and makes permanent several tax provisions related to nonresident aliens filing state income taxes in California. Specifically, the bill indefinitely prohibits the Franchise Tax Board from requiring nonresident aliens who do not have a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) to provide these identifying numbers when filing state tax returns. The bill also continues to allow nonresident aliens to file group tax returns through an agent or employer, with a specific tax rate structure that includes the highest marginal tax rate plus an additional 1% for certain taxpayers. Under this group filing system, the taxpayer or authorized entity acts as an agent and makes tax payments on behalf of the nonresident aliens. No individual deductions are allowed, though some tax credits are permitted. The bill defines a nonresident alien as a nonresident who meets specific federal tax code criteria, and it allows the Franchise Tax Board to adjust the income of group return filers to ensure proper tax calculation. These provisions, which were previously set to expire in 2026, will now be permanent, providing ongoing tax filing flexibility for nonresident alien workers in California.

Budget and Finance

Revenue and Taxation (Assembly)

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB1518