I'm currently a CA resident and I had some income from KS this year. So I filed my KS tax as non-resident and I knew I could claim other state tax credit on my CA tax return. Now I'm a bit lost when filling out California Schedule S form.
Assume I earned 95,000 from CA and 5,000 from KS. So my total income for CA tax return is 100,000. So what's Double-taxed income taxable by California? (100,000 or just 5,000)
If answer for above question is 5000 then what's Double-taxed income taxable by KS? (100,000 or again 5000).
The reason why I'm confused is the taxable income on my KS tax return actually is 100,000 instead of 5000. Based on 100,000 income, I need to pay 4000 to KS. Since I'm a non-resident, so my final KS tax liability is 4000*(5000/100,000) = 200
So I think my double taxed income should be 100,000 for both CA and KS, though KS did apply percentage 4000/100,000 on KS tax return.
Is my understanding right?
