Received class action income, wrong state

[1099erGirl]

My husband just received an unexpected check for a class action lawsuit from a temp agency he worked for, in 2012, when we lived in CA. They mailed a check with a W2 for tax year 2019 already attached at the bottom. They took out taxes for CA where we don't live and said to use this W2 when we file next year for 2019. They had our current GA address, but still processed as CA tax payee.  Now... the wages are only $1.58 (why bother???) And the state tax withheld is .10. Historically during our move and transition out of CA I had to have payers change my tax state to GA if I was still working for them remotely. That way I had no reason to have to file in two states and the work was done from GA (And with universities they know how to do that with online adjuncts). 

What do I do with this idiotic payment? There's NO WAY I'm paying $40 to both file and buy CA state tax software next year. Does having a W2 with CA tax withheld require us to do so next year at filing time? Or can it just be filed in GA. Is the only solution to contact the payer and tell them to back the payment out and we'll forego the whomping settlement money? I doubt they'll reissue but we don't care. We just want it off our records and have no desire ever to file in CA again. 🙂 

[CarolynM · Accepted solution]

No, you don't need to report this income to CA. Report the income on your federal and Georgia tax returns. 

You were already residents of GA when the benefits for the class action suit were received. 

The only reason to file a CA tax return would be for a refund, but it would cost you more than the .10 you are currently out.