Enter your W-2s and other information returns (1099s, etc.) in the Federal section. Then, in the California state section, if you are a part-year resident, TurboTax asks questions to determine the amount of wages and other income that should be taxed as California income. Depending on your situation, it may or may not be the same amount as the amount shown as California wages or other income on your forms.
As a part-year resident, you pay tax on all worldwide income while you were a resident of California.
As a nonresident, you pay tax on your taxable income from California sources.
Sourced income includes, but is not limited to:
- Services performed in California
- Rent from real property located in California
- The sale or transfer of real California property
- Income from a California business, trade or profession
If you are a nonresident or a part-year resident, you determine your California tax by multiplying your California taxable income by an effective tax rate. The effective tax rate is the California tax on all income as if you were a California resident for the current taxable year and for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions, divided by that income. Use the following formula: Prorated tax = CA taxable income × Tax on total taxable income ÷ Total taxable income
See California FTB Pub 1100 for more information.
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