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You are correct. Utah actually is not taxing your California income, but it does factor it in. What Utah is doing is pretending that all of your income is taxable in Utah, and then taxing you in proportion to the amount of income you actually earned in Utah.
So, for instance, if you earned 50,000 overall, and 20,000 in Utah, Utah figures out what your tax is on 50,000. Let's say it is 2000. It will then take the percentage of income actually earned in Utah, in this case 40%. Your Utah tax is 800 (2000 x 0.40)
You are correct. Utah actually is not taxing your California income, but it does factor it in. What Utah is doing is pretending that all of your income is taxable in Utah, and then taxing you in proportion to the amount of income you actually earned in Utah.
So, for instance, if you earned 50,000 overall, and 20,000 in Utah, Utah figures out what your tax is on 50,000. Let's say it is 2000. It will then take the percentage of income actually earned in Utah, in this case 40%. Your Utah tax is 800 (2000 x 0.40)
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