State tax filing

Yes, you will need t file a California non-resident state return. It is important to file this return first to properly allocate income.  

The state where you live (your resident state) will tax all your income and will give a credit for taxes paid to the non-resident state on the resident state return so you are not double taxed.

In order to receive a non-resident state tax credit follow these steps:

1. Enter your non-resident state information first.
2. Enter your resident state information next.
3. Check to make sure you choose the resident state long form.
4. On your resident return summary screen, you'll see a credit for your non-resident state taxes.

If you created your resident state return before you began work on your nonresident state return, TurboTax will not pull over any tax amounts (credits) from your nonexistent nonresident state return.

To resolve this issue, you will need to remove your resident state return and then create a new resident state return. Doing this has the same effect as entering your non-resident state first, which is how the returns should be entered.

Depending on your state, resident and non-resident incomes may be allocated automatically according to your Wages & Income entries on your federal return.

In some cases, we'll prompt you to allocate income between your resident and non-resident state. If asked to do so, you will allocate your rental income to California and your other income to your resident state.