Work in CA and live in VA

[mliptak]

I own property in VA and maintain a residency in this state.  I am currently working in CA during the pandemic and will most likely live in CA for the majority of the year.  What residency should I use for my W4 form for my CA job?  I also have a job in which I work remotely, will I have to pay VA, CA or both state taxes for this?  

[DavidS127 · Accepted solution]

You will pay California taxes on the income you earn working in California.  That same income will also be taxed by Virginia, but Virginia will give you a credit for taxes paid to California, so you don't pay tax twice on the same dollar of income. 

You are a "domiciliary resident" of Virginia until you declare some other state as your permanent home.  Because you are in California on a temporary basis, you are a nonresident for tax purposes.  Note that the California nonresident return will make a calculation that includes all your income, but will then apply a percentage to that tax such that you only pay tax on the income earned in California.

Your remote job is Virginia income, because Virginia is your residence.  You should not report that as California source income on your California nonresident tax return.