TurboTax is making entries on Lines 12 and 15 of the 2020 Virginia Schedule OSC (Credit for Tax Paid to Another State) because somewhere in TurboTax screens there was an entry for a second state.
Are a Virginia full-time resident and have income that is sourced from another state? Generally, income is considered sourced in the location the services were provided.
Per the State of Virginia, if you received income from another state and were required to pay income taxes as a nonresident in that state, you may be eligible for a credit for the income taxes you paid to that state provided the income is also taxed by Virginia. If you earn income in a state that doesn’t have an income tax, you are not eligible for this credit on that income.
If you did have income sourced from another state, you would have to file a non-resident return with that second state.
However, from the information provided in the question, it sounds like you are a full-time Virginia resident and have no out of state income. If so, the first thing you want to do is make sure you've filled out the Personal Info section correctly:
- With your return open, select My Info in the left-hand menu.
- Then, on the Personal info summary screen, please make sure Virginia is listed under both of your names.
- Then, scroll down to Other State Income, and confirm there is not another state for the question Did you make money in any other states?
- Select Continue to return to your Personal info summary.
- Click on State on the left hand side.
- Confirm there are no additional states on the State summary page.
Lastly, since Schedule OSC is just identifying your spouse as the person claiming the credit, then I would start by reviewing all her tax information inputted. Make sure that Virginia is selected for each screen.
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