Your rental income is taxable by both states. Rental income from a property located in CA is taxable by CA. ALL your income (including the CA rental income) is taxable by NC because your state of residence can tax all your income regardless of its source.
The good news is that you'll be able to claim a credit on your NC return for the tax you pay to CA, so you won't be double-taxed on the rental income.
But you must file two state returns: a non-resident CA return plus your home state NC return.
When you do your taxes In TurboTax, be sure to complete the non-resident CA return first, before you do your NC return, so that the program can calculate and apply the credit correctly.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
