Your employer should not be withholding any California tax from your pay if you never lived or worked in CA in 2023, so yes, you could choose option 1.
However, you say you are moving to CA in 2024, so you may need to file a new form when you move to start CA withholding again (or just let them keep withholding it) as you will be a California Part-Year Resident for 2024 and will owe CA tax on your wages.
For 2023, file a Non-Resident State Return to CA, declaring California income of $0 to get your withholding refunded.
Here's more info on California DE-4.
@gkontaria
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
