I moved from CA to WA last year and I am a part-year resident in CA. I got two W2s - one for CA and one for WA. My CA taxable income seems incorrect in TurboTax. Here is my understanding of calculation. Can you please check?
In my CA W2
Box1(wages, tips,..) 42,443
Box12. 740 with code W (HSA)
Box 16(State wages, tips, etc.) 43,183 (this is the sum of the two above)
I have no deductions and no adjustments.
First question: Is 43,183 my CA AGI?
CA standard deduction for the whole year resident is 5,363.
My standard deduction will be a portion of it which from the following calculations.
43,183 (the CA income) / (My federal AGI + box12 with code W from both WA and CA) = 0.2715
Box 12 with code W means HSA contribution and it is not taxable for federal but it is for CA so the whole amount (HSA from WA and CA) is added here.
0.2715 * 5,363 (CA standard deduction) = 1,456
So my CA taxable income would be 43,183 - 1,456 = 41,727
But TurboTax shows it is 40,984.
I don't know how this number comes out.
It is good that my taxable income is lower, but I want to know why.
Thank you!
