CA income as a full year CO resident
I lived in CO all of 2024, and received income from both CO and CA (RSUs vesting from when I had been a CA resident in previous years). My W2 shows separate lines for state wages (and taxes withheld) for CA and for CO. I have entered my CA wages as a nonresident, and matched that amount to the CA state wages on my W2. However, when I enter the CO information as a full-year resident, I don't see any options to enter my CO state wages, it just assumes all wages were earned in CO, and so the CA wages are included in the CO taxed amount.
I tried adding the CA wages under "Your Taxes Paid to Another State," and it gives me a credit amount of $3,520, which is far less than the taxes paid to CA, and leaves me owing more to CO.
Is there another way to enter state-specific wage totals?
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Leaving an answer here now that I figured it out. The way the numbers were presented confused me some.
CO taxes (or whatever state you're in) are calculated on all income, earned anywhere. You then claim credits for the various states that you earned other income in. The income I had from CA was being taxed at a far higher rate than CO would have taxed it, and I was allowed to take a credit for the amount that CO would have taxed it.
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Hi chloe314,
Glad you were able to figure out the Credit For Taxes Paid to Another State section.
Based on what you wrote, yes, all wages are taxable in your home state of Colorado, and you report California non-resident income on a CA non-resident tax return. Tax paid to the state is entered, along with withholding tax paid to the state (two separate numbers completely), in addition to other questions your home state (Colorado) asks about.
A formula is then used to calculate the amount of credit on your resident return (Colorado) based on the tax paid to the non-resident state (California).
Here's a good article from our Community on this topic.
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