AmyC
Expert Alumni

Get your taxes done using TurboTax

You will not be double taxed on the same state income, that is illegal since 2015. One state will give a credit for tax paid to the other state. Who gives the credit depends on the states and their agreement. If you would like to reply with the other state, we can share more information.

 

The  2023 Instructions for Schedule CA (540NR) states:

California nonresident amounts – Enter the total amount of profits or losses (including losses allowed from passive activities) from all businesses sourced to California while a nonresident of California. California uses a mandatory market assignment method and single-sales factor apportionment to apportion business income to California. A nonresident may have California sourced income or apportionable business income if receiving income from intangibles or services from California sources.

If, as a nonresident, you derived income from a business, trade, or profession conducted partly within California and partly outside California, only income from the part conducted within California is considered California source income that you must report in column E. If there is any business relationship between the parts within and outside California (flow of goods, etc.), apportion the gross income or loss from the entire business. To determine the portion of income or loss from businesses engaged in multistate activities that you must report, use the apportionment formula described in Schedule R, Apportionment and Allocation of Income.

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