Backstory, I am active duty military and my wife worked for JP Morgan Chase. She worked in our home of record state of Texas for 5 years and in California for 3 1/2 years. We needed to use the money when she left for another company last year so we did a complete balance early distribution. $1,200ish was withheld for CA taxes. It seems as if maybe the 2.5% early distribution fee for the state of CA is being applied to our return on Turbo Tax.
Do I owe any penalty for early withdrawal of 401K to California? I would think since we are non-residents that no tax or penalty would be owed to California
