Preguntona
Junior Member
I used to live and work in CA for a large US corporation. Several years after departing the company & moving to the state of SC, I received proceeds from a class action lawsuit against the company. The lawsuit pertained to employment - the company had misclassified employees such as myself as exempt from overtime. In addition to payment of back overtime wages, interest and damages, I received both a W2 and 1099 from the settlement fund. On the W2, I noted that CA state taxes (as well as federal) were withheld.
My question is this: Was it proper for CA rather than SC state taxes to be withheld?
I know I need to complete a NonResident CA state tax return, but am not sure if 1) I would be considered to have earned wages or income while working in a state that I was not a resident of, or
2) if the settlement fund folks accidentally withheld state tax for the wrong state (thus filing a nonresident return would enable me to recover the erroneous withholdings).
My question is this: Was it proper for CA rather than SC state taxes to be withheld?
I know I need to complete a NonResident CA state tax return, but am not sure if 1) I would be considered to have earned wages or income while working in a state that I was not a resident of, or
2) if the settlement fund folks accidentally withheld state tax for the wrong state (thus filing a nonresident return would enable me to recover the erroneous withholdings).