Below is an excerpt from Idaho form 39NR which calcluates the Idaho credit for taxes paid to South Carolina
Total earned of $137k. $61k of that was earned and taxed in Idaho, $67k of that was earned and taxed in South Carolina, and the Idaho portion only was taxed in both Idaho and South Carolina.
I filled out form 39NR section C as follows:
- Idaho adjusted income from Form 43, line 32, Column B ............................ $61k
- Federal adjusted gross income earned in other state adjusted for
Idaho modifications. See instructions ..................................................... ……...$67k
- Amount of income taxed by Idaho and also taxed by another state ............. $61k
- Idaho tax, Form 43, line 42 .......................................................................... $3.5k
- Divide line 3 by line 1. Enter percentage here ............................................. 100 %
- Multiply line 4 by line 5 ..............................................................................................$3.5k
- Other state’s tax due minus its income tax credits ....................................... $3.2k
- Divide line 3 by line 2. Enter percentage here ............................................... 92%
- Multiply line 7 by line 8 ............................................................................................. $3k
- Enter the smaller of lines 6 or 9 here and on Form 43, line 43 .............................. $3k
Of the $3.5k Idaho tax owed based on the income earned in Idaho, the Idaho return is getting a $3k credit (line 8 - 92% of SC tax on that same amount) resulting in a tax liability to Idaho of $500 for $61k of income which seems low and basically SC is getting that money ... The bottom line net of both states to me is correct it just seems Idaho is being under paid and SC overpaid.
