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My royalty income should be sourced in Oklahoma, but Turbo Tax has sourced it in California (my residence) How do I correct my California return. Oklahoma has already fixed it for me.

 
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Employee Tax Expert

My royalty income should be sourced in Oklahoma, but Turbo Tax has sourced it in California (my residence) How do I correct my California return. Oklahoma has already fixed it for me.

It's taxed in both.  While the royalties are not "California-sourced" income as such, California is allowed to tax all of your income because it is your resident state.  You won't be able to remove the income from the California return.  However, to limit the effect of double-taxation, you will receive a credit on your California return for the taxes you pay to Oklahoma on this same income.  But the royalties will be included in California taxable income, because you live there.

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Employee Tax Expert

My royalty income should be sourced in Oklahoma, but Turbo Tax has sourced it in California (my residence) How do I correct my California return. Oklahoma has already fixed it for me.

It's taxed in both.  While the royalties are not "California-sourced" income as such, California is allowed to tax all of your income because it is your resident state.  You won't be able to remove the income from the California return.  However, to limit the effect of double-taxation, you will receive a credit on your California return for the taxes you pay to Oklahoma on this same income.  But the royalties will be included in California taxable income, because you live there.

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New Member

My royalty income should be sourced in Oklahoma, but Turbo Tax has sourced it in California (my residence) How do I correct my California return. Oklahoma has already fixed it for me.

Thank you. So I need to apply for a credit on my California return. Oklahoma had amended my return for me and adjusted my refund. I guess I can manually file in California for what I had to pay to Oklahoma
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Employee Tax Expert

My royalty income should be sourced in Oklahoma, but Turbo Tax has sourced it in California (my residence) How do I correct my California return. Oklahoma has already fixed it for me.

What you will file in California will be the actual tax liability to Oklahoma, but yes, you have the right idea.
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