If you are a GA resident, GA taxes all of your income and gives you credit for tax paid to the other state. 2022 IT-511 Individual Income Tax Booklet page 9 states:
Full-year Residents Full-year residents are taxed on all income, except tax exempt income, regardless of the source or where derived.
You get credit for the lower state tax on the lowest taxable amount.
- Each state calculates taxable income differently.
- Each state has its own tax rate/ system.
- You get the lowest of both categories as a tax credit.
GA calculates the income differently and you are subject to the difference as a GA resident.
Always prepare your nonresident return first for proper credit.
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