What figure should be entered into "total 5% income", total income that you're being taxed 5% on or 5% of your income?

[BillM223]

Is this for Massachusetts or another state? And is this a question in the interview or what? Please give us some context.

[jdback9119-gmail]

I live in mass and work in. CT. When figuring out the state credit for paying the other taxes, is where

 I’m lost. It says “enter total 5% income and then below it is says taxes Connecticut taxes paid

[jdback9119-gmail]

[DMarkM1]

Enter the total amount of income that CT taxed that is also taxed in MA.  MA taxes earned income (salaries, wages, tips, commissions) and unearned (interest, dividends, and capital gains) income at 5%.  That income is called "5% income" because that is the rate it is taxed at.  

In the second box you will enter what the CT tax on that income from the nonresident CT return actually is.  This number is not necessarily the withholding or what is owed at filing.  It is the "Total Tax" line the "CT Tax Summary" found in online versions using these steps.  If you are looking at the actual CT forms it is line 16 on the CT form 1040NRPY.  

1. Select "Tax Tools" in the left hand menu
2. Select "Tools"
3. Select "View Tax Summary"
4. Select "Preview My 1040" in the left hand menu

5. select "CT Tax Summary"      

[attackmom]

It asks for the total amount of 5% income on which taxes were paid to CT. Isn't this what is listed on the W-2 from CT? If not, where do we get that figure from? Is it Line 11 of our Federal 1040 which is also Line 1 of the CT-1040 NR/PY?

[DawnC]

 This number is not necessarily the withholding.   See Line 7 of CT 1040NRPY for the amount to enter in the first box (5% income)

The second box is the "Total Tax" line of the CT Tax Summary.  If you are looking at the actual CT forms, it is line 16 on the CT form 1040NRPY.   @attackmom 

[attackmom]

Thanks but that is not the question I asked. I know how to get the "CT tax paid on this income". What I asked was the following....

The MA return asks for the total amount of 5% income on which taxes were paid to CT. Isn't this the wages that are listed on the W-2 from CT? If not, where do we get that figure from? Is it Line 11 of our Federal 1040 which is also Line 1 of the CT-1040 NR/PY?

For example, I did a Roth conversion this year. No taxes were paid to CT on that. Where exactly do we get that figure from? Please do not answer if you do not know the answer.

[attackmom]

SO IT IS LINE 7 OF THE CT NR/PY FORM THAT WE ENTER? WHICH IS ALSO LINE 11 OF THE FEDERAL 1040 AND LINE 1 OF THE CT NR/PY FORM?

[AmyC]

We do not know your situation so I will tell you what is needed. Clearly you made money in both CT and MA. I am assuming that you live in MA and want a credit for the income that is being double taxed by CT. If you simply worked in CT, then your w2 wages are the answer. If you have other CT income, like a rental house, add that CT income. 

MA taxes earned income (salaries, wages, tips, commissions) and unearned (interest, dividends, etc) income at 5% with some exceptions to capital gains on page 12. See 2023 Form 1 Instructions.

@attackmom