Live in WA, taxes withheld for business trip to CA. Do I file a CA state return?

[ghy56]

My employer withheld California state tax for a short business trip to California. Washington does not have a state tax. Do I file a California state tax return? The trip wasn't that long but the CA state tax witholding amount seems absurdly high.

[TomD8]

CA taxes non-residents on income from work actually (physically) performed inside CA.  As to whether or not you need to file a non-resident CA tax return, see "Do I Need To File?" in this reference:

https://www.ftb.ca.gov/file/personal/residency-status/part-year-and-nonresident.html

[ghy56]

Thanks, I understand CA is forcing companies to withhold funds from workers that travel to CA on business trips. I wasn't able to understand if the 3 days I spent meeting with colleagues means CA is just going to take my money, or if I need to file a CA tax return also. The link doesn't clearly address my situation, it just vaguely references it.

[DMarkM1]

There are many nuances in dealing with CA taxing non-residents.  First,  since there is CA withholding you need to file a non-resident tax return, if for nothing else at least to get any overpayment refunded.  You will enter your W2 in the federal interview as normal.  

What you need to determine is what is CA source income.  Here is a link that may be helpful.  Note the "When to withhold" items.  

In completing your CA non-resident return you will allocate to CA only CA source income.   If the income is CA source income, you allocate by working days.  Divide your income from the company W2 by the total number of working days for that company (excludes weekends/holidays/vacation days).  Then multiply by the number of working days in CA. 

You mention you were in CA meeting with colleagues.  Is your employer a CA company or it has an office in CA?  If so, then the time in CA for a meeting with that company is CA source income.  Three days of income would be allocated to CA.  

If your employer is not a CA company and you were not meeting with clients (performing a service in CA) then the income is not CA sourced.  Zero income allocated to CA.