I'm a W2 freelancer who used to live in CA and now live in Texas. I notified all of the companies that I worked for that I was moving out of CA, half of them still withheld state taxes so now i'm getting corrected W2s. I updated the information and checked the box in Turbotax that said I had a corrected W2. Do I need to add any other forms? How will I get the money back from CA?
The w2c marked is all you need. You will file a nonresident CA return. Claim only income that is CA sourced. The withholding may have been required. Here are the rules for work like yours:
FTB Pub 1031 states:
Nonresidents of California are taxed only on income from California sources.
Business Income (or Loss)
A nonresident’s income from California sources includes income from a business, trade, or profession carried on in California. If the nonresident’s business, trade, or profession is carried on both within and outside California, the income sourced to California may be based only on the business conducted within California, or may be determined by using the apportionment formula for corporations engaged in multistate businesses.
California uses a mandatory market assignment method and single-sales factor apportionment to apportion business income to California. A nonresident may have California sourced income or apportionable business income if receiving income from sales or services sourced to California. Such income includes:
1. Sales of services to the extent that the purchaser of the service receives the benefit of the service in California.
2. Sales of intangible property to the extent that the intangible property is used in California. For marketable securities, the sales are in California if the customer is in California.
3. Sales from the sale, lease, rental, or licensing of real property if the real property is located in California.
4. Sales from the rental, lease, or licensing of tangible personal property if the property is located in California.
Refer to Cal. Code Regs., tit.18 section 17951-4 to determine when income from business, trade or profession should be sourced according to apportionment rules. Also, see R&TC Section 25136 and Cal. Code Regs., tit. 18 section 25136-2 or California Schedule R, Apportionment and Allocation of Income, for more information.
Withholding may be required on a nonresident’s business income if an exemption, waiver, or reduction is not certified or approved.
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