DanielV01
Expert Alumni

State tax filing

Generally speaking, TurboTax does auto-populate the credit.  The credit works this way:  Virginia (your resident state) will give you a credit for taxes you pay to SC on the income that is earned in SC (because both states are taxing you).  However, SC tax is not what was withheld from her W2, but rather, SC tax withheld minus SC refund.  There can also be an additional limit:  Virginia's credit is up to the amount of tax Virginia taxes the same income.  If Virginia tax is less than SC tax on that income, the credit is limited.

If TurboTax pre-polulated the credit, it is likely the correct amount.  But you can check;  subtract the SC refund from SC tax withheld, and change the amount of tax on SC income to what the amount you calculate.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post