Yes, the resident return includes all income while the nonresident return only includes income from that state. The resident state will give a credit for the nonresident state tax paid.
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.
2. A refund from a loss, like on a rental or business in that state? A loss just reduces your income, it doesn't create a refund.
3. A loss reduces your income, just like on the federal.
@taxingtaxes
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