married couple live in CO and one works for company in CA and spouse works in CO

Forum|Forum|4 years ago
March 6, 2022
1 reply
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We are married couple that lived full time in Colorado for 2021, I worked for company in California for 2021 and my spouse worked for company in Colorado for 2021. How do we file fed and state taxes thru Turbo tax?

Multiple States

LenaH

Community Manager

Some additional clarification is needed to answer the question correctly. Did you telecommute from Colorado or were you in California when you earned the wages? In addition, was California state income tax withheld from your wages?

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prhoten_2022Author

Level 2

telecommuted from Colorado. California taxes was withheld.

LenaH

Community Manager

You will have to file a resident Colorado return and a nonresident California return.

You have zero sourced wages to California because the income is sourced to your home state. Sourced income means that you physically earned the wages in that state. Per the State of California, you are only responsible for state income tax if you performed services in California for wages. Therefore, you are only filing a California nonresident return to get a refund of taxes paid.

Your home state of Colorado will tax you on this income. Therefore, you will likely have tax due to Colorado and depending on your underpayment, might be subject to a penalty. It would be best to have your employer withhold Colorado tax if you continue to plan on telecommuting.

Please complete the following steps in TurboTax: