I was given a 1099NEC. The payee is out of California but I don’t live there. Do I hit yes on the question about making money in another state?

It depends on where the work was done. If you performed the contract in your home state, you would not claim income in another state. However, if you performed the work in California, then you are required to file a California State Income tax return.

Since the Bindley court decision in 2019, CA taxes non-resident independent contractors on income earned from services provided to California-based clients, even if the services are performed from a location outside California.

https://www.jdsupra.com/post/contentViewerEmbed.aspx?fid=5627083b-2aaf-4917-bfcf-5c56d1daa368

https://ota.ca.gov/wp-content/uploads/sites/54/2019/08/18032402_Bindley_Decision_OTA_053019.pdf