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Returning Member
posted Jun 28, 2023 10:30:55 AM

w-2s in two states

I am a legal resident of CA, and I had a temporary W-2 job there. I am about to start a W-2 job in TN while keeping my CA residence primary. How do I file taxes in 2024? Will CA ignore my TN income?

 

Thank you!

Josiah Vencel

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1 Best answer
Employee Tax Expert
Jun 28, 2023 10:49:18 AM

Dear Josiah, 

 

Thank you for your question.  

 

Here is a TurboTax Article addressing multiple W-2 forms.  https://blog.turbotax.intuit.com/taxes-101/dont-let-filing-multiple-w-2s-scare-you-3714/

 

States taxes on W-2 employment from different states depend on whether the states have personal income tax or not.  If both states have personal state income tax, after completing your federal return, complete the non resident state return first to determine what state tax (if any) is owed.  Then complete the residental state last so you can apply for credit for taxes to paid to other states. 

 

In your case, CA has personal income tax but TN does not tax personal income.  You  will only have a CA state return as none is required for TN.  Your W-2 from TN may or may not include CA state tax withholding.  As a resident of CA, all of your income is taxable in CA, even if earned elsewhere.  In your case, your CA state taxes will be the same as if the TN job was located in CA.  CA residents are taxed on all income regardless of source.  Sourced income includes, but is not limited to:

  • Wages
  • Goods
  • Services
  • Property

https://www.ftb.ca.gov/file/personal/residency-status/index.html

 

I hope you find this helpful!

Kathryn 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

 

 

1 Replies
Employee Tax Expert
Jun 28, 2023 10:49:18 AM

Dear Josiah, 

 

Thank you for your question.  

 

Here is a TurboTax Article addressing multiple W-2 forms.  https://blog.turbotax.intuit.com/taxes-101/dont-let-filing-multiple-w-2s-scare-you-3714/

 

States taxes on W-2 employment from different states depend on whether the states have personal income tax or not.  If both states have personal state income tax, after completing your federal return, complete the non resident state return first to determine what state tax (if any) is owed.  Then complete the residental state last so you can apply for credit for taxes to paid to other states. 

 

In your case, CA has personal income tax but TN does not tax personal income.  You  will only have a CA state return as none is required for TN.  Your W-2 from TN may or may not include CA state tax withholding.  As a resident of CA, all of your income is taxable in CA, even if earned elsewhere.  In your case, your CA state taxes will be the same as if the TN job was located in CA.  CA residents are taxed on all income regardless of source.  Sourced income includes, but is not limited to:

  • Wages
  • Goods
  • Services
  • Property

https://www.ftb.ca.gov/file/personal/residency-status/index.html

 

I hope you find this helpful!

Kathryn 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"