Non Resident Bonus

[PCP1]

I moved from California to Virginia on 12-31-2023.  I am  a full time resident of VA for 2024.  I received a bonus payment in March 2024 which was based on my 2023 performance.  Do I owe income tax in CA because the bonus received in 2024 was based on my 2023 performance? 

[MaryK4]

Yes, you may owe income tax to California. A bonus is California state source income and taxed to nonresident to the extent the bonus was attributed to work performed in California.  You will be able to take a credit for the taxes paid to California on your Virginia return so that you are not taxed on the same income twice.  TurboTax will guide you through in the state interview.  

Individual Retirement Accounts, Employer-Sponsored Retirement Plans, and Compensation

[PCP1]

If I complete the interview process starting with CA first as a non-resident and then VA second I get an error statement in the VA return.  If I complete VA first and CA second then I owe no CA tax. 

[PCP1]

On the VA forms, the pulldown menu has "California" spelled out.  I am a non-resident of CA and a resident of VA.  Following the TurboTax instructions I completed the non-resident CA questionaire first.  Then I completed the VA full time resident section second.  On the VA form itself, "CA" is highlighted in yellow and the Check This Entry error reads as follows (in the VA forms):  "Sch OSC (1): State Code is not a valid state for this credit.  You must claim the credit on CA's nonresident form".  Virginia is not included on the pull down menu.

[MaryK4]

Virginia is a reverse credit state, so you are correct that you prepare the Virginia return first and will owe no tax to California.  @PCP1 

See Credit for Taxes Paid to Another State.