If Indiana is your resident state then it gets to tax all of your income regardless of where it's from. However, Calif gets to tax the income you earned there as well. To help prevent double taxation, your nonresident TT/Calif return will prepare a tax credit for the tax on the income that both states are taxing. Be sure your TT/IN return is completed first, then the TT/Calif return. TT/Calif will need some input from you about the income and the portion of the IN tax attributable to that income.