Yes, that is correct. Since California (CA) has a higher rate of tax they will give you credit for the full amount of tax paid to Utah. Then you would be responsible for the difference if the UT tax is lower than what CA would charge on the same income. The credit for taxes paid to another state on the same income are summarized below.
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
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