Please clarify - what do you mean by "How do I fill out #2?"
Active-duty military are considered to live in their state HOR no matter where they are stationed. Their active-duty pay is considered to be earned in their state HOR.
When you complete the My Info Personal Interview:
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Select California as your state of residence;
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Answer "No" when asked if you "Lived in another state in 2020?" That question only applies if you changed your state of residence in 2020.
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When asked if you "Earned money in another state?", answer "No" (unless the military member had non-military income in the state where you are stationed).
