Within TT, when I choose Legal Residence CA and Stationed MD, and yes to PCS outside CA, it recommends CA Form 540NR. But keep seeing conflicting information on TT forum answers that I should be filing as CA Form 540. If I force TT to select CA Form540, it then doesn't exclude military wages.
When military member's HoR is Calif and stationed outside Calif on PCS, they become Calif nonresidents for tax purposes. Unless you had some non-military income in MD (second job there, or whatever) then you have no state tax liability at all - to any state. MD can't tax your military pay because your HoR is Calif, and Calif can't tax it because you are a Calif nonresident (for tax purposes).
See California's publication 1032, Tax Information for Military Personnel, here
You can find your situation in one of the examples listed in there.
The state residency information is populated from your My Info input. As active duty military, you are considered working in another state while living in CA.
Follow these steps:
- While in your return, click My Info on the left menu.
- Click Edit to the right of your name.
- When asked if you lived in another state, click No (see attachment).