We live in another state, but my spouse draws medical retirement income from California. The taxman says we have to file in California and pay state income tax there. Is this true? (Seems unfair - we don’t use any of their services.)
If you have income originating in California, you have to pay income tax on that amount.
Link
(Of course there are minimums and such. Retirement money may be exempt. The link includes a series of questions on who must file that may be of assistance.)