I moved from CA to MS in late January 2020, staying with the same company (they have locations in each State). My January 15th and 31st paychecks were noted as CA (CA taxes withheld), while all other paychecks were withheld in MS only.
Upon receiving my W2's, my entire taxable income is included in Box 16 for MS and my entire Q1 income is included in Box 16 for CA (so it totals 1.25x my total state taxable income). Payroll claims this is appropriate and that it notes the entire pay for any quarter you worked in the state.
I am seeing conflicting info out there about whether my return will handle this by allowing me to input how much time was spent in each state, or whether I need to send in additional documentation showing actual paystubs as well as fill out a Form 3525 for CA to substitute my W2.
Can someone clarify if this is typical and recommend how to properly document this in Turbotax?
I had HSA contributions (not deducted in CA) as well as some capital gains if there are any specifics on how to best handle that state-by-state.
