I am not a resident of California but I receive a deferred compensation pension payment from a former employer in California. My employer reports this income on a W2, not a 1099. However, there is a box 11 on the W2 that is marked as "Unqualified Plan"; meaning it is a pension plan not covered by ERISA.
It is my understanding that Non-residence do not have to pay California Income Taxes on pension income. However, when I complete a California State tax return in Turbo Tax, it shows I owe taxes.
How do I handle this in TurboTax so that it shows zero tax owed?