@TomD8
This is what thinking about. Is it reasonable?
- I compute my Washington DC taxes on my total income and I compute my New York taxes on my total income. All that is left is to figure out how much other-state credit each return should have.
- For my New York return, I compute the proportionate part of my Washington DC all-income tax that is due to Washington DC income. Because my New York average tax rate is higher, I get that as a resident credit on my New York tax return.
- For my Washington DC return, I compute the proportionate part of my New York all-income tax that is due to New York income. That feeds into my other-state credit for Washington DC, though I don't get the full amount because my New York average tax rate is higher.
