Question: I would not be taxed at 10% for W2 and K-1 income. Correct?
- Incorrect. You would be taxed at 10% overall because you would receive the 5% credit for the tax paid to VA which will result in an overall tax of 5% in VA and 5% in NY or a total of 10% due to the rate in your resident state. (Because it's lower than the 10% actual tax in NY in your example, the credit is limited to the amount actually paid).
- You will pay tax on your investment income in your resident state only.
Question: Since Florida doesn't have income tax, I would file a non-resident taxes for W-2 and K-1 income in Virginia (at 5%) and 0% (no filing) for my investment income. Is this correct?
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