Amy, thanks for your response. Here is some additional information.
All earned income was from the other, non-resident state.
No Alabama earned income. Only some dividend income.
Below are Schedules CR and OC after entering all information into TurboTax Premier.
RESULT
A1 is the other state’s Taxable Income.
A2 is AL Adjusted Gross Income
A3 results in a smaller percentage
A4 results in a smaller credit
SCHEDULE CR
Double-Taxed Income Smart Worksheet
A NY
B New York
C Other state’s taxable Income: 22,535
D Amount of tax imposed by other state: 1,081
E Other state’s income included in Alabama AGI: 30,281
Col A NY
Col B Taxable income on other state’s return: 22,535
Col C Portion of AL AGI attributable to other state: 22,535
Col D Tax due other state using AL tax rates: 1,088
Col E Tax due shown on other state’s return: 1,081
Col F Smaller of D and E: 1,081
Line 26 Sum of Col C: 22,535
Line 27 Sum of Col F: 1,081
SCHEDULE OC
Section A
Current Tax Period liability: 1,273
Section B
A1. From Schedule CR, line 26: 22,535
A2. AL AGI from Form 40, page 1, line 10: 31,273
A3. Other States' % of AL AGI (line A1/A2): 72.06%
A4. Multiply Current tax liability (Section A) by A3: 917
A5. Enter line 27 from Schedule CR: 1,081
A6. Credit Allowable (smaller of lines A4 or A5): 917
