TomD8
Level 15

State tax filing

Normally the income of a non-resident who never physically worked in NJ would not be taxable by NJ.  However, NJ issued the following guidance during the pandemic:

 

"However, during the temporary period of the COVID-19 pandemic, wage income will continue to be sourced as determined by the employer in accordance with the employer’s jurisdiction."

https://www.state.nj.us/treasury/taxation/covid19-payroll.shtml

 

So I think your best course of action is to file a NJ non-resident tax return along with your CA home state return, and to claim a credit on your CA return for the taxes paid to NJ.

 

For this to work in TurboTax, you must complete the non-resident NJ return before you do your CA return, so that the program can calculate and apply the credit correctly.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.