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lulunjnj
Returning Member

Was only in CA for two days for a meeting and my employer reported income and withholding for CA on W2. How can I get a refund?

I live in NJ, work in NY.  Have been filing NY Non-Res and NJ Res returns without event.  In 2024, I traveled to CA to meet a client from overseas.  Total time spent in CA was 2 days.  I was shocked by the W2s - besides NY and NJ, my employer reported $6K in CA wages and withheld $400 in taxes for those 2 days.  I am on variable comp.  No one in payroll could explain how they came up with the $6K.  Just cited a policy change that requires income allocation based on business travel records.  The meeting was of a social nature, no revenue was actually generated from it.  I do not believe I owe CA any taxes, however Payroll wouldn't revise the W2.  I wish to file a non-resident return to claim a full refund, however on the 540NR and Schedule CA, I don't seem to find a way to do so.  Am I missing something? 

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3 Replies
MaryK4
Expert Alumni

Was only in CA for two days for a meeting and my employer reported income and withholding for CA on W2. How can I get a refund?

You will have to allocate the California wages based on your time worked in California.  

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lulunjnj
Returning Member

Was only in CA for two days for a meeting and my employer reported income and withholding for CA on W2. How can I get a refund?

Since the W2 already shows a $6K figure which I don’t agree with but “allocated” by my employer, can I show a different number on the CA NR return?  How can I do that on the 540 NR?  My argument is none of my wages are not sourced in CA.  Whether I took this trip or not my income would not change.  My full year wage income is already taxed by NY - the W2 shows the same figure for both NY state and federal, thus my employer didn’t adjust the NY income for the $6K shown for CA.  I cannot claim credit for taxes paid to another state on the CA return as a non-resident.  Is NJ on the hook here - meaning, I paid CA too but take a credit from NJ?

lulunjnj
Returning Member

Was only in CA for two days for a meeting and my employer reported income and withholding for CA on W2. How can I get a refund?

Correction to one line in my reply:  “My argument is none of my wages are sourced from CA.”

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