College student summer employment taxed in two states

[Cat108]

I appreciate  help with my daughter's return:

My daughter goes to college in California fulltime.

She is resident of Oregon

We still claim her as we provide the majority of her support.

She worked  during the summer in California. The employer took off Oregon state taxes and California state taxes.

Do I file a Oregon state tax return and/or California state tax return? If I need two state returns, how do I do that in Turbo Tax?

Thanks in advance  your help.

M

[DMarkM1]

Your daughter will file a resident OR return and nonresident CA return.  In the "My Info" section edit her personal information and indicate she lived in OR on 31 Dec and did not live in any other states. This generates the OR resident return.

Next still in "My Info" scroll down to "Other State Income" and answer "Yes" she earned income in another state and select CA from dropdown list. This generates the CA nonresident return.

After entering her income and deductions in the federal interview you should complete the resident OR return before the CA nonresident return. There is a special tax rule for OR residents working in CA that allows the taxpayer to claim a credit for taxes paid to OR on the CA nonresident return.    

In the CA interview in the "Income/Adjustments" section only allocate to CA the income earned/received while in CA.  In the credits section you will claim the credit for taxes paid to another state to mitigate the double taxation by OR.