The answers are years apart. Covid changed a lot of state rules. There were also changes with reciprocal and reverse state credits. CA and OR both have very unusual rules. CA only gives nonresident credit to AZ, Guam, OR and VA.
- Prepare the resident OR return first.
- Then prepare the nonresident CA and claim a credit for the OR double taxed income and a credit for the double taxed income. Since he happens to live in one of those rare states.
- 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.
Anyone not living in one of those states/ territories should prepare the returns opposite.
Reference:
@snmiller68
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