GeorgeM777
Expert Alumni

Business & farm

Yes, you do need to pay attention to IT-204; however, such form is an informational return.  You will prepare Form IT-204 to report income, deductions, gains, losses, and credits from the operation of your partnership for calendar year 2022.   

 

The tax you paid to Virginia is not entered on IT-204.  Rather, the information about the tax you paid to VA will be entered on NYS IT-112-R.  IT-112-R is the form that will compute the amount of the credit you will receive on your NYS return, IT-201, for having paid tax to VA on the same income that NY will tax.  This NY credit is referred to as the resident credit.   

 

You prepared your returns in the correct order because you prepared your non-resident tax return first.  In order for TurboTax to properly calculate your resident credit, the application needs to know the tax amount you paid to VA.  Now that you have that information, go ahead and begin to prepare you NYS tax return.  You will see a screen in the NY section that relates to taxes paid to VA (or it may use the term "another jurisdiction") and that is where you will enter the tax you paid to VA.  

 

@Sandpiper21 

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