topic Re: California state return in State tax filing

California state return

Becca64 — Mon, 26 Feb 2024 15:25:56 GMT

I taught remotely in California and they took out Michigan taxes as I live in Michigan. Why do I owe money to California?

Re: California state return

DaveF1006 — Mon, 26 Feb 2024 15:40:03 GMT

To clarify, is your work sourced from a California-based employer or Michigan?

Re: California state return

TomD8 — Mon, 26 Feb 2024 16:05:04 GMT

Another issue is this: were you paid as an employee (you received a W-2), or as an independent contractor (you received a 1099-NEC)?

Re: California state return

Becca64 — Mon, 26 Feb 2024 16:10:51 GMT

company was based in California and I received a W-2

Re: California state return

TomD8 — Mon, 26 Feb 2024 16:21:00 GMT

@Becca64 --

From page 7 of CA Tax Publication 1031:

"Wages and salaries have a source where the services are performed. Neither the location of the employer, where the payment is issued, nor your location when you receive payment affect the source of this income."

https://www.ftb.ca.gov/forms/2023/2023-1031-publication.pdf

CA taxes non-residents only on CA-source W-2 income. If your work was 100% performed from a location in Michigan, then it is Michigan-sourced income and therefore not taxed by California. If that is your situation, then you can answer No to the TT question about having income from another state.

Re: California state return

Becca64 — Mon, 26 Feb 2024 17:39:04 GMT