In 2015, the Supreme Court decided that people should not be taxed twice. Therefore, you get a credit from your resident state. Here is how it works.
- First, prepare your non-resident return. This creates your tax liability for the non-resident state.
- THEN prepare your resident state return and it will generate a credit for your income already being taxed in the non-resident state.
- The credit will be the lower of the state tax liabilities on the same income. You may owe your resident state.
It isn't possible for the program to create a credit before it knows the liability. Your returns may be wrong if you do not prepare the states in this order.
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