Filing State Taxes: Living in CA with remote work in WI

[yee379]

Hi, my spouse started her remote job as a salaried employee of a company in WI in 2022. We both live in CA and file jointly. Am I correct in assuming that we have to file state taxes for both CA (where we live) and WI (where her company is)? How do I do this in TurboTax? It is a simple case of paying the $45 for the extra state? Will it walk me through the nonresident and apportionment (and credit) of the taxes between the states? Will there be a separate charge for eFiling with WI?

[MaryK4]

If your wife worked in California only, you only have to file a state tax return for California.  You pay state taxes to where the work was performed, not the location of her company.  (Note if she went to Wisconsin for training or meeting, you may have to file a Wisconsin return.)
 

[yee379]

Thanks @MaryK4 - my wife performed her work only physically in CA (for the WI based company). however, i'm a little confused... in WI's 1NPR tax document, they say that "Nonresidents - Wisconsin taxes only your income from Wisconsin sources"; does that mean that the wages (from the WI company) is not deemed as income from a WI source solely because of this 'physical presence' test? cheers,

[MaryK4]

Correct- All wages and any other compensation for services performed in the state are generally considered to be from sources in the state. The place, where the personal services are performed, generally determines the source of the personal service income, regardless of where the contract was made, or the place of payment, or the residence of the payer. @yee379