Hi,

I am a student in a university in California on F1 visa. I have received a W2 from my university. Also I did my summer internship in 2008 in Washington state and received a W2 from the company in WA. Please let me know the answers to following questions:

1. While filing federal tax returns I must use both the W2 forms and hence "Adjusted gross income" in 1040 NR-EZ form will show combined income from both sources. Is this right?
2. While filing CA state tax return whether I should use both W2 forms or just my university W2 from CA?
3. Item number 13 in CA state tax form 540 asks for "Enter federal adjusted gross income". The entire tax calculation in the form is based on this value. Do I enter my federal gross income (which is calculated using both W2s) here?

Please let me know,
Thanks
Vivek

1) Yes.

2) Do NOT report the Washington income on your California return, but make sure you file Form 540NR. As an international student, by law, you are NOT a resident of California, so only California-sourced income should be reported on the California tax return.

3) Yes. Though only the California-sourced income is taxed, your tax RATE is determined by ALL world-wide income.