Yes, I did the CA non-resident return first and the tax liability is 0, which resulted in a refund of the total amount withheld of $3690. I also understand that Pennsylvania has a flat rate of 3.07%, which is lower than the CA rate, which is on a graduated scale.
Again, my questions are as follows:
On the screen 'Do you have any double-taxed income from California?', are my W-2 box 1 wages entered in both the 'California amount' and the 'Your amount' columns on the 'Gross Compensation' line? What amounts go in the 'California amount' and the 'Your amount' columns on the 'Tax Due to California on income above' line? (I already called the TurboTax helpline twice previously and received two different answers. One indicated I shouldn’t fill out the double-taxed screen at all, which leads to zero tax liability to CA and $2146 tax liability +$95 penalty to PA. The other answer led to a total refund from CA and tax liability of only $246 to PA, which isn’t right) .
The taxes withheld by California are $3690. The taxes due in Pennsylvania are $2146. I assumed I would receive a refund of $1544 from CA ($3690 withheld less $2146 due) and not have a refund or balance in PA. (PA would give me credit for the taxes paid in CA, because no income was earned in CA and no taxes are due in CA.) Instead, as it stands now, turbotax shows a total refund of the $3690 withheld for CA and tax due of $2241 for PA ($2146 tax due plus $95 underpayment penalty! I don't think I should have a penalty, since state taxes were withheld throughout 2023!) I think it may all go back to how I filled out the double-taxed screen. Thank you!
