Skip to main content
January 5, 2025
Solved

Why do my state income taxes say California resident taxes if I was not a California resident this year? We were living in Nevada and my husband worked in California.

  • January 5, 2025
  • 2 replies
  • 0 views
If my husband works in California but we live in Nevada, why do we owe so much in California state taxes and why does Turbo tax file our state taxes as California residents?
    Best answer by TomD8

    In the Personal Info section of TurboTax, enter Nevada as the state of residence for both you and your husband.  Then indicate that your husband had "other state income" from California.  This will prompt the program to produce the correct forms.

     

    The income that your husband earned in CA is fully taxable by CA.

     

    Note that, since CA and NV are community property states, CA requires that you use the same filing status (MFJ or MFS) that you used on your federal tax return.

    2 replies

    rjs
    Employee
    January 5, 2025

    Are you working on a 2024 tax return? TurboTax for California for 2024 is not really ready yet. Some 2024 forms for California are expected to be available in TurboTax on January 9, and other forms not until January 23. (Those dates could change.) Delete the California tax return that you started and try again after January 9.


    If TurboTax is creating a California resident tax return, you must have answered a question about your residency incorrectly somewhere along the line, either in the Personal Info section of the federal tax return, or a question about residency or which form to file at the beginning of the California tax return. Review your answers about residence and income from other states in the Personal Info section. But again, wait until after January 9 to start the California tax return.


    Your husband has to file a California nonresident tax return, Form 540NR, and pay California income tax on all of the income he earned from working in California. As to why it is "so much," California has the highest income tax rates of any state. If you have a large payment due on your California tax return, it may be that your husband did not have enough California tax withheld from his pay during the year.

     

    TomD8Answer
    Employee
    January 5, 2025

    In the Personal Info section of TurboTax, enter Nevada as the state of residence for both you and your husband.  Then indicate that your husband had "other state income" from California.  This will prompt the program to produce the correct forms.

     

    The income that your husband earned in CA is fully taxable by CA.

     

    Note that, since CA and NV are community property states, CA requires that you use the same filing status (MFJ or MFS) that you used on your federal tax return.

    **Answers are correct to the best of my ability but do not constitute tax or legal advice.