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Get your taxes done using TurboTax
@Helpneeded12 - CA will tax you on ONLY $15,000 of income.
Then, SC will tax you on all the income ($115,000) and then give you a credit for the lesser of:
a) what you paid CA
b) what the tax difference would have been if you deleted that $15,000 from the SC form.
I suspect b) is what will occur since the SC tax rates are lower than the CA tax rates. In essence, SC calculates the SC tax on the $15,000 and gives you a credit. it is not going to give you a credit for the higher tax rates in CA.
Turbo Tax will figure this out seamlessly.
‎August 22, 2023
1:43 PM