Example: State 1 tax liability of $3,000. State 2 - resident state - tax liability of $4,400. The most credit State B will give is $3,000 and only if the taxable income is as much or more. States compute taxable income differently.
Follow these steps:
- To locate your tax liability for "state 1"
- Log into your return
- Select state taxes
- Enter the non-resident "state 1" for which you need the liability
- On the left, go to Tax Tools
- Select Tools
- Select View Tax Summary
- You will see Summary of your "State 1" Return at the top.
- Locate the line that says Total Tax
- Write that number down.
- Return to your resident "state 2" return and enter that number where it asks for the liability for "state 1".
- Some states tax income the federal does not. For example: NJ taxes money you set aside in your retirement plan. Each state has different rules.
@Mpb70350
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