You're welcome! Yes, TurboTax will calculate the credit for tax paid to another state. For this to work correctly, you generally need to prepare the nonresident state return first in order to get the tax liability for that state which you then enter into the interview for the resident state for purposes of calculating the credit. There are some exceptions; for example, Arizona doesn't tax certain Arizona income of California residents. See here for more information from California FTB.
You can use either Desktop or Online products. Desktop allows you to prepare up to five Federal tax returns for one price and you get one state included, though there is a charge to e-file the state return. You can also use TurboTax Online to test different scenarios without completing and paying for the return and then finish the return in Desktop. Click here for more information from TurboTax on how to decide which filing status to choose.
Click here for tax tips for community property states.
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