I live in CO and have worked a W2 remote job in CA for all of 2024. I have remained in CO all year and have also worked a job here locally. On my W2 from the CA company it shows that CO taxes were withheld. There is nothing withheld for CA. I completed the online TurboTax and it showed I owed CA over $1300. I consulted with two support agents and one said I did owe and the other said I shouldn't even bother filing the one in CA. I went to the CA tax website to file there directly in the hope it would clarify the situation, but when I put everything in it shows that CO tax withheld is erroneously being withheld for CA. This makes me think I am not supposed to file. Can anyone clarify this situation for me? Do I owe taxes in two states? Do I file a tax return with CA? No one is answering the phone and they do not have an email option.
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Q. Do I owe taxes in two states?
A. No.
Q. Do I file a tax return with CA?
A. No.
Q. Can anyone clarify this situation for me?
A. Yes. As a non-resident W-2 employee, who never physically worked in CA, you have no "CA source" income and do not need to pay CA income tax or even file a CA tax return. You do owe CO tax on all your wages from the CA based employer. Your employer did it right, withholding only CO tax.
The answer would be different if you sometimes actually worked in CA or you were self employed or a "contract employee" (no W-2).
Thank you so much!
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