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New Member
posted Feb 13, 2021 10:24:02 AM

How do I adjust my state income in TurboTax, since I am a non-resident of CA and worked most of the year remotely? (Only in CA 45 work days.) W2 shows full amount for yr.

California line on W-2 shows full income from CA. I need to adjust the income in my TurboTax state return for only the days I was actually in CA. Source income rule. Thank you.

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3 Replies
Employee Tax Expert
Feb 13, 2021 10:57:33 AM

You would file a nonresident return in California and you should only enter wages that you earned while working in California while going through the TurboTax state interview. Don't include any wages that were earned in your resident state.

 

The first thing you want to do is make sure you've filled out the Personal Info section correctly:

  1. With your return open, select My Info in the left-hand menu.
  2. Then, on the Personal info summary screen, scroll down to Other State Income, and select Edit.
  3. At the Did you make money in any other states? question, answer Yes and make sure your nonresident state(s) are selected from the drop-down.
  4. Select Continue to return to your Personal info summary.
  5. Click on State on the left-hand side.
  6. Add California
  7. Follow the on-screen instructions.
  8. On the screen Did you earn all of your income in California? click No, I earned all or some in a different state. 

To ensure accurate calculations, always complete the non-resident (CA) return first if filing in multiple states because your resident state will give you a credit for taxes paid. This is especially important since you stated your income was fully taxed in the state of California. 

New Member
Feb 13, 2021 11:48:21 AM

Thank you for the quick reply. I followed your instructions. As it turns out, the state interview is not asking me about income earned while in California. It did not ask any questions on income. Is this because my W-2 already has a line on it for my total CA income from my employer in CA for my federal return? I need to adjust my CA income to the amount that I actually earned while in CA.

New Member
Feb 13, 2021 12:02:52 PM

I removed the CA return and re-entered the information. It asked me for the amount in CA. Thank you for your assistance.