Solved
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?
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.
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