First, prepare your Federal return; then, prepare a nonresident return for the other state where you had income (if that state has an income tax) on which you would only identify the income from that state as taxable there. Then, prepare the California return. Use the Resident Form 540.
Where prompted in TurboTax, indicate that you earned money in another state. To get the credit for tax paid to another state (based on the nonresident return you prepared), in the California interview, at the screen for Credits and Other Taxes, select Start next to Other State Tax Credit and answer the questions.
There are a few exceptions. California residents can't claim the credit If the other state is Arizona, that is an exception. Arizona doesn't tax California residents on items that California will tax. Also, the District of Columbia, Guam, Oregon, and Virginia are exceptions unless you are a dual resident of both jurisdictions.
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