The credit will need to be claimed on the nonresident California return instead of on the resident Virginia return in this situation.
Go back into your Virginia state interview section.
- Select Edit under the Credits section
- The next page should be Credit for Tax Paid to Other States Summary. Go ahead and select Delete to the right of the CA copy.
- Then go back into the California state summary.
- Select Edit under the Credits section in California.
- Select Edit or Add to report the amount of income and taxes paid in Virginia for the California sale of property taxed in Virginia.
This should remove the error for the Out of State tax credit in Virginia and ensure you are only taxed on the income one time.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
