TomD8
Level 15

Tax help for military filers

@pk 's answer is basically correct.  It works like this:

 

CA can tax you as a non-resident only on "CA-source" income; for example, earnings from work performed within CA.

 

Your resident state of AL can tax ALL your income, including any earnings from California.

 

Therefore you must file both a non-resident CA tax return reporting your CA-source income, AND your home state AL tax return, reporting ALL your income.

 

You will be able to claim a credit on your AL return for the taxes paid to CA on the dollars taxed by both states.  The credit prevents double taxation, which is prohibited by federal law.

 

Using TurboTax, prepare the non-resident state return before you do the home state return.  This will result in the TT program calculating and applying the credit for you.

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