State tax filing

This year, you file as a California part-year resident.  You owe California income tax on all your world-wide income that was paid to you while you lived in California.  Indicate in Turbotax that you lived in California and give your move-out date.  Turbotax may be able to allocate your income automatically (based on number of work days in the year and the number of days in California) but you may have to allocate other income manually.  (For example, investment interest and dividends will be taxable to California only if they were earned or paid during the time you lived in California.).  You are probably over-withheld so you can expect a refund.  

 

You do not owe California income tax on wages paid to you when you are both living and working out of state.  California is not one of the states that adopts a "convenience of the employer" rule on remote employees.  However, you will owe non-resident California taxes for any part of your wages that are earned while you are living or working inside California, such as if you have to attend mandatory meetings or training on site a few days a year. 

 

You should probably have your employer stop your California tax withholding.