LenaH
Employee Tax Expert

State tax filing

No. You have zero sourced wages to California because the income is sourced to your home state of Michigan. Sourced income means that you physically earned the wages in that state. Per the State of California, you are only responsible for state income tax if you performed services in California for wages. 

 

However, you will have to file a nonresident California return if your employer withheld California state income tax from your wages. In this scenario, California will give you a refund of taxes paid and your home state of Michigan will tax you on the income. Depending on your underpayment to your home state, you might be subject to a penalty. It would be best to have your employer withhold Michigan tax if you continue to plan on telecommuting.

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"