My wife and I live in California and she does bookkeeping online for a company in Nevada. Since Nevada has no state income tax, no state taxes are taken out of her paycheck, only federal taxes. When we filed our taxes on Turbo Tax it left her total income out of our state taxes but included them in our federal taxes. I am thinking it is incorrect and we should owe state taxes in California since this is where we live. Is Turbo Tax correct in not including my wife's total wages in our state tax return? Thanks for any help!

CA wants the residents to report worldwide income on CA tax return.