I see, the liability for the state of AL must be $1273. Since 72.06% of the income is earned out of state, you are receiving credit for the actual AL tax liability of the NY income., $917 is the AL tax on the NY income.
The $1081 was based on just the NY income and NY tax liability.
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.
The numbers are correct in their calculations.
@Springs01
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