Do I pay taxes in CA when I work and Live in Colorado?

[ebmarch]

I was hired by an employment agency in CA to do work for a CA-based company. However, I performed all my work from my office in Colorado where I live. I did not live in CA at anytime during the year. The employment agency withheld CO taxes, but no CA taxes. Do I need to file taxes in CA when all of my work for the employment agency was done in Colorado?

[CalCountry · Accepted solution]

If you did not perform any work in CA, and your employer (or the agency) did not withhold any CA tax, then you should not have to file a CA tax return.  It is irrelevant that the employment agency is located in CA and irrelevant that the company is based in CA.

[huyqhuynh]

I wish I know this earlier, I'm in the same situation. Worked for a company in CA, but live in CO the whole time. 

I filed tax 2020, 2021, 2022 to CA and paid a lot. I should have file tax in CO for less charge. Should I amend those 3 years? Do you think it worth it to amend, I never done it before an not sure how complicated to amend. 

[Hal_Al]

The above answer assumes you are a regular W-2 employee. If you were self employed or a contract employee (got a 1099 instead of a W-2), you would be required to file a non resident CA return to pay tax on that income. 

The income would also be reported on your resident CO tax return. CO gives you a credit, or partial credit for the tax you pay CA.

Q. Should I amend those 3 years? Do you think it worth it to amend, I never done it before an not sure how complicated to amend?

A. If you also claimed the income on your CO return, it probably came out close to even.  The simple evaluation is: was the CO credit equal to or less than the CA tax paid.  The difference should be what you get back. But you'll also have to amend CO and there will be interest on the late payments. 

How to amend https://ttlc.intuit.com/questions/1894381-how-to-amend-change-or-correct-a-return-you-already-filed

[TomD8]

@huyqhuynh wrote:  "I should have file tax in CO for less charge."

Did you not file a CO tax return for 2020, 2021, and 2022?