I have a W2G for the tax year 2017 which shows an incorrect address on it. Also the state shows Arizona. Not California which is the state I lived in all year.

[Critter]

If it is your address that is wrong that is not an issue. It is taxable to the state you live in no matter which one it is.   If this was won in another state then it is also taxable to that state as well so if they withheld the taxes for the other state then you may need to file a non resident return to get back any excess taxes withheld if any.

[Opus 17]

In which state did you actually win the money?  Does the W-2 show any state or federal taxes withheld?

[thursdaydog1920]

I actually won in Arizona and no taxes were withheld.

[Opus 17 · Accepted solution]

So, don't worry about the address.  When you enter the W-2G in turbotax you can use the address on the form, it won't change your taxes.

Because this is Arizona income, you will need to prepare an Arizona non-resident return to pay Arizona tax on your Arizona income.  Then you will prepare a resident return for California where you pay California state income tax on all your world-wide income including the same gambling winnings.  However, California will give you a credit in the amount of the Arizona tax you pay so your overall tax bill ends up the same as if you only filed in California.