State tax filing

You might be missing something but you're definitely on the right track. You do want to claim a credit on your California return for the tax paid to Virginia. To do this in TurboTax:

1. On the California screen, Take a look at California credits and taxes, select Other State Tax Credit.
2. Add Virginia and indicate you were living outside of California when you earned this income.
3. Type in Capital gains from sale of main home and the amount of gain taxed by both states.
4. Enter the total income tax paid to Virginia and the total adjusted gross income taxed by Virginia. Do not enter the change in taxes. You can get the total income tax paid by sneaking a peek at your Virginia return at this point:
   1. Select Tax Tools in the left menu (if you don't see this, select the menu icon in the upper-left corner).
   2. With the Tax Tools menu open, you can then view your 1040 form: Select Tools. Next, select View Tax Summary in the pop-up
   3. Select VA Tax Summary in the left menu.
   4. Your Virginia income tax is about midway down. The Virginia AGI is the Federal adjusted gross income plus additions to income minus subtractions from income. Do not include your standard or itemized deductions.