Hi,
I had to track down the information and on her W2 it says:
Box 16:
CA - it has her income earned in CA
IL - says income earned is 0.00
Box 17:
CA - state income tax withheld
IL - $8.66
Is any other information relevant? It does have Box 14 Other VPDI $$.
Maybe we did it incorrectly but I thought we followed TT.
Ultimately she paid into IL on the 1099-IL form based on her income earned (over $1K which likely explains the penalty), and then on the CA 1099-CA non-resident form it calculated CA taxes as well so only refunded some of it (it was the Non-Resident form so perhaps this is as expected - she does owe some portion to CA perhaps). But now I'm questioning whether we did it correctly.
What is the correct flow of taxes and refunds so that we only pay to 1 state (or pay the appropriate amount to each state??)?
Thanks!
