TurboTax is correct. California earned income for purposes of the California Earned Income Tax Credit is wages, salaries, tips, and other employee compensation, subject to California withholding. Your Massachusetts W-2 was subject to MA withholding, so it should not be included in the computation.
Looking at the situation from the other way around, California says if you were a nonresident, you must have earned wage income that is subject to California withholding to qualify for the credit.
Refer to California Earned Income Tax Credit sections B. Differences in California and Federal Law and Step 5 California Earned Income.
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