I paid out of state taxes on royalty income. How do I avoid getting double-taxed by my home state?

[MargaretL · Accepted solution]

After your nonresident state's tax preparation is completed - and when going through your resident state questions - you will be asked to enter taxes paid to another state - this ensures that you receive a credit for taxes paid and you are not double taxed.  In other words, be sure to prepare your nonresident state, then your resident tax return.