AmyC
Expert Alumni

State tax filing

Yes, your resident state taxes all income but gives a credit for tax paid to CA.

You will need to prepare the states in a special order. You may need to delete both states and begin again.

 

  1. First, prepare your non-resident CA  return. This creates your tax liability for the non-resident state. How do I file a nonresident state return?
  2. THEN prepare your resident state KS return and it will generate a credit for your income already being taxed in the non-resident state.
  3. 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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