AmyC
Expert Alumni

Business & farm

Yes, be sure you prepare the nonresident state first to create the tax liability. Then when you do your resident state, you will get a credit for the double taxed income. You get credit for the lower state tax on the lowest taxable amount.

  • Each state calculates taxable income differently. 
  • Each state has its own tax rate/ system.
  • You get the lowest of both categories as a tax credit.
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