Last year, from Jan to Nov, I worked for a California company from a different state. During this time, I worked mostly remotely from my domiciled state (~70%) and traveled to California as work required (~30%.) I'm trying to figure out my source income from CA. Looking at my W2, I see only one line for wages and one line item for CA tax withheld and no breakdown between CA and my state of residence.
When filing California Nonresident tax forms, do I need to adjust the wages (by 30%) or does the W2 need to be corrected to show wage breakdown and tax withheld between CA and my state of residence?
From TurboTax standpoint, the workflow is prompting me to enter the amount earned from California. I just wasn't sure if I can (or allowed to) modify the wages listed in the W2.
Any guidance is much appreciated. I also contacted the Franchise Tax Board but didn't get much help or direction.
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Enter the W-2 in the Federal section as it is shown on your form.
If you are filing a Nonresident California return, you can make the appropriate allocation of wages between states in the California interview when you get to the Nonresident Adjustments section. TurboTax will ask, "How much of the $xxx from federal Forms W-2 did you earn in California?" Enter the amount attributable to California in the box provided. Another screen will come up asking if any other income items need to have amounts allocated to California.
When you have multiple state returns, you should usually enter the earlier part-year resident or nonresident state return first, then enter the state where you resided at the end of the year, in order to get the correct results. The state where you are currently a resident may be able to give you a credit for taxes you paid to other states. There are some exceptions; for example, Arizona credits California residents for taxes expected to be paid to California on Arizona income.
Several states also have reciprocal agreements. See here for more information.
Please also see this TurboTax tips article for more information on filing returns with multiple states.
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