You take credit for the tax paid in a nonresident state. Here is how the 'other state tax credit' works:
The credit for tax paid to another state on the same income will be the lesser of:
- the tax liability actually charged by the nonresident state, OR
- the tax liability that would have been charged by your resident state
If you don't have tax in the other state, then there is not going to be a credit for that state on your resident state return.
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