File both nonresident states first. She would report all of her income to New York (NY) where she lives. You can enter that as her wages for NY in the W-2 Entry, although her residency in the NY return should pull all of her income over.
There is no reciprocal agreements with NY so as stated by @TomK2023, a return must be filed with the nonresident states. Prepare these first.
Once those are completed, then the credit for taxes paid to another state will populate for her resident NY return.
- Enter the appropriate wages in the W-2 for each state along with any withholding for each state according to the W-2
- Review each state return for the amount of taxable income and tax liability (not refund or balance due)
- Next review the NY return you will have the appropriate figures for your 'Other state tax credit' section.
This should resolve your issue for all states.
The credit for taxes paid to another state on the same income is used on your resident state because they do not want you to pay taxes twice on the same income. As the resident state all worldwide income must be included.
The credit for tax paid to another state on the same income will be the lesser of:
- the tax liability actually charged by the nonresident state, OR
- the tax liability that would have been charged by your resident state
@sg11sg
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