Yes, you should fill in only money taxed by New York(NY) and California (CA). Fill in only the amount that would equal two months of work for the NY employer while living in CA.
On the NY return you should take the total tax liability (not withheld, refund or balance due), then use your same formula divide by number of months working in NY and multiply by the two months living in CA. Enter this as the tax paid to NY on the CA return.
This will provide a credit for the taxes paid to NY while you were living in CA. The following explains how this credit works.
The credit for tax paid to another state on the same income will be the lesser of:
- the tax liability actually charged by the nonresident state, OR
- the tax liability that would have been charged by your resident state
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