I lived in Maine for 5 months in 2024 and Washington DC for 7 months. I ended up owing a total of $890 in tax to Maine. I made ~ $35k in Washington DC in 2024. DC withheld $2159 from my paycheck. The calculation of the taxes that I owe to DC (Line 20 on the D40 form) is $1359.
When I fill out the DC state tax forms using Turbo Tax, it ends up giving me a credit of $1359 on Schedule U.
(Part I Credits; a Non-refundable Credits).
1. Enter State Income tax credit.
State (a) Maine $1359.
The $1359 credit then goes to Line 22 of the D40 form and then I end up getting back all $2159 that was withheld. I don't understand how the credit on Schedule U is $1359. Shouldn't it be $890 which is the actual amount that I owe Maine? How can the credit on Schedule U be greater than what I actually paid in taxes to Maine?
