RobertB4444
Expert Alumni

Business & farm

On the federal return you're going to enter the federal W2.  At the bottom of the federal W2 you will enter the state information that is there in boxes 15 through 20.  

 

Then do the following IN ORDER.

 

If you have started any state tax returns already delete them.

 

Add back the non-resident state (in this case Pennsylvania) ONLY if there is Pennsylvania information on the bottom of the W2.  If there is not then there is no need to file a Pennsylvania return.

 

If there is Pennsylvania information on the W2 then create a non-resident tax return for Pennsylvania.  Carefully go through the questions and tell the system that any other income on the return was earned outside of Pennsylvania.

 

THEN create the California resident return.  California taxes everything that any resident earns even if they earned it in Pennsylvania.  But California will also give a credit for taxes paid to another state.  So the California return will pull in a deduction from the Pennsylvania return that you already created and deduct those taxes from the California tax that is due.

 

That should get you done with filing tax returns for this year.

 

@tazio 

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