I worked in Oregon for 9 years, moved to Calif, I realize I need to pay penalties and file in 2 states. But Oregon is asking for more information, Turbo tax did not include the early distribution on the Oregon form, but did on California, because I was a resident when I withdrew it,

Question:

Do both states have the right to tax the early withdrawl?

Only ONE state gets to tax the early withdrawal, and that would be the state where you resided when you got the check in the mail.