TomD8
Level 15

State tax filing

If you are a resident of Washington and your remote work is entirely done from a Washington location, your W2 income from that work is not subject to CA taxation.  If that's your situation no CA taxes should be withheld from your pay.

 

CA taxes non-residents only on CA-source income.  W-2 earnings are "sourced" where the work is actually performed.  In other words, CA taxes non-residents only on earnings from work actually (physically) done within the state of California.

 

Talk to your payroll department.

 

To obtain a refund of the incorrectly withheld CA taxes, at year's end file a non-resident CA tax return and allocate zero income to California.

 

 

**Answers are correct to the best of my ability but do not constitute tax or legal advice.