I added MA source income just in case, good thing! The company is in MA so all of your income is MA source income. So, prepare the nonresident MA return, the program will calculate the tax liability and then prepare your state return to get a credit for the MA tax.
You get credit for the lower state tax on the lowest taxable amount.
- Each state calculates taxable income differently.
- Each state has its own tax rate/ system.
- You get the lowest of both categories as a tax credit.
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