According to CA schedule S instructions, income sources for other state tax credit are defined as:
1. Compensation for services rendered by employees has a source where the services are performed. 2. Compensation for services rendered by independent contractors has a source where the benefit of the services are received.
In my case, I live in CA. My employer location is MD but they put me on contract at a company in AL. I work for the AL company remotely from CA. So what state would be the source of my income - CA or AL ? I am confused whether my case falls under #1 or #2.