Out of state or taxes paid to another state are based on the final calculations of the nonresident return. For instance, if you are a NJ resident working in NY and your NY nonresident return showed a final state tax due of $5,000, the out of state credit would be $5,000 applied on your NJ return. Even if you had $6,000 withheld, your credit would be $5,000 as you would file your NY nonresident return to claim the $1,000 refund.
As long as you enter your nonresident return information in the state entry area before your resident return information, the program should accurately calculate the out of state credit to be applied on your resident return.
@wenwang
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