Can I be taxed by two states on the same income twice?

Question

Hi,
I am a resident of California since Dec 2005. I have recieved some back salary payment from my old company in Missouri in 2006. i.e They paid off my dues in 2006. I have two W2s with payments from CA (present employer at California) and the other from Mo (old employer at Missouri). Since California taxes income from all states, will I have to pay income tax twice on the amount earned in missouri. How can I claim a refund for the taxes paid to missouri since I have to pay a tax to California on the amount earned in missouri.
There doesnt seem to be any provision on the Missouri non resident tax form to claim this.
Thank you.

Answer 1

File a non-resident, part-year return in MO, listing only the MO income. Pay any taxes as needed.

File your CA return as usual, listing all income. Take a credit on your CA return for the taxes paid to MO.

The net effect is that you will pay the higher of the two state's taxes on the income that is taxable by both states. Because of the credit for the MO taxes paid on your CA refund, you're not being double-taxed.