I have a question about which numbers I need to use in order to correctly ascertain how much credit I should be getting for taxes already paid. I was a nonresident worker for part of the year in a city. I had biweekly local taxes taken out of my paycheck for this nonresident city. Now, I'd like to get credit for those taxes on my resident city taxes. I'm a bit confused by the questions and the information on my tax return.
Example W2 information from this employer - it included a TOTAL City subsection as well as subsections for the two different citites:
Nonresident state wages - $4000, Nonresident local wages - $3500. (I'm not sure why these are not the same, but called my employer and they said the numbers are correct). Nonresident taxes - $20. Income tax exemption amount of $400
Resident state wages - $4000, Resident local wages - $4000. Resident taxes - $40 ( resident taxes for the city I live in are higher than the nonresident taxes for the city I work in).
These are the questions I need to answer for the credit:
1) Enter the income that's taxable in the other city and also taxable in your resident city = (I'm not sure if the answer should be $4000 or $3500)
2) Enter the exemption amount claimed on your other city return = $400
3) Enter your total tax amount from your other city return that's a result of income being taxed by both cities = ? (I think this would be $20 right)
