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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
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In 2008, I lived in Colorado and worked from my home office

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In 2008, I lived in Colorado and worked from my home office for a company based in California. My taxes and wages (W2) were reported to CA, however I mistakingly paid and filed in Colorado. I just got a tax due notice from the state of California...what do I do now? Request my former employer to amend and revise my W2, file a 540NR form, or amend my CO tax form and refile in CA?
Submitted: 6 years ago.
Category: Tax
Expert:  Stephen G. replied 6 years ago.

Stephen E. Grizey :

Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything you don't understand

Stephen E. Grizey :

Did you have any CA income tax withheld in 2008 on your W2?

JACUSTOMER-7piu6mrg- :

Yes, I had $1646 withheld for CA income taxes.

Stephen E. Grizey :

What did you do with that, anything? Claim it on your Colorado return?

JACUSTOMER-7piu6mrg- :

Well, I'm looking at my 08 taxes and it appears that I added the $1647 to my federal taxable income (line 2 of CO form 104- state income tax deduction) and then paid taxes on this amount. I'm so confused... thats what I get for using Turbotax.

Stephen E. Grizey :

Well, if you worked in Colorado, technically you don't owe CA anything & would file a non-resident return to get the money back.

Stephen E. Grizey :

However with the W2 prepared the way it is, & the CA withholding you may want to file a non-resident return in CA;

JACUSTOMER-7piu6mrg- :

Really? Its that easy? I just fill out a form 540NR and I will get the $1647 back? And more importantly off the CA Franchise Tax boards bad list?

Stephen E. Grizey :

Of course, you would have to amend your Colorado return to claim a credit for the taxes paid to California

JACUSTOMER-7piu6mrg- :

OK, to confirm.... I will file a non resident return for CA and will get the $1647 back.

JACUSTOMER-7piu6mrg- :

Then I will amend my CO taxes claiming the credit?

Stephen E. Grizey :

Then you would have to file an amended federal return to take out the income you put in related to the CA taxes

Stephen E. Grizey :

No, just a minute I have a call from CA

Stephen E. Grizey :

No. What I was saying was to pay the tax to CA (because of the W2) & then get a credit in Colorado for the taxes paid to CA; you're a resident of Colorado, so you have to file in Colarado

Stephen E. Grizey :

You may need to get a CPA to straighten this out for you;

JACUSTOMER-7piu6mrg- :

So the notice I received today is that I owe CA $2900. So you are saying to pay this amount and then amend my CO 08 taxes? I think you are probably right about the CPA, this is way over my head.

Stephen E. Grizey :

No, don't pay that; you probably don't owe that much

JACUSTOMER-7piu6mrg- :

Thanks for your guidance! I'm going to make an appointment with a CPA.

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