topic state tax credit for taxes paid in other state in State tax filing

state tax credit for taxes paid in other state

bpvirginia — Mon, 09 Mar 2026 09:09:26 GMT

I was a part year resident in CT and VA in 2021. When I filed through turbotax the two state filings were sent to each respective state, but my CT return was not sent to VA. The Virginia tax form Schedule OSC [for getting a tax credit for taxes paid to another state] requires that I send a copy of my CT return to VA. Why didn't turbotax send my CT return to VA? TurboTax claims to follow the rules for each state, and is supposed to streamline the tax filing process.

Re: state tax credit for taxes paid in other state

ErnieS0 — Sat, 05 Mar 2022 16:23:41 GMT

Part-year residents generally are not able to claim credit for tax paid to another state because there is no double-taxed income.

You will report all income earned while living in Connecticut on your part-year Connecticut return and all income earned while living in Virginia on your part-year Virginia return.

If you worked for the same company, your W-2 should have separate lines for state wages and state withholding for CT and VA.

Neither CT nor VA tax telecommuters, so if you continued to work remotely for a CT company while living in VA, none of that income is taxed by CT.

Re: state tax credit for taxes paid in other state

bpvirginia — Mon, 07 Mar 2022 13:35:11 GMT

Ernie- thanks for the reply.

Regarding your comment:

Neither CT nor VA tax telecommuters, so if you continued to work remotely for a CT company while living in VA, none of that income is taxed by CT.

As with most part year resident tax forms, the CT form allocates income to the various resident states. However, Schedule CT1040-AW has a column D which asks for the "income from CT sources" while not living in CT. So it appears that CT taxes income while I am not residing in CT. The CT allocation of income form seems to contradict your comment above.

I appreciate any further clarification that you may have.

Re: state tax credit for taxes paid in other state

LenaH — Mon, 07 Mar 2022 14:01:36 GMT

Schedule CT1040-AW has column D because there are many other instances in which Connecticut will tax a nonresident. It is not for those that telecommute from other states and do not perform services in Connecticut.

Per CT-1040NR/PY Booklet, Connecticut-sourced income of a nonresident is:

Attributable to ownership or disposition of real or tangible personal property within Connecticut including but not limited to the income from the rental or sale of the property;
Attributable to compensation for services performed in Connecticut or income from a business, trade, profession, or occupation carried on in Connecticut, including income derived directly or indirectly by athletes, entertainers, or performing artists from closed-circuit and cable television transmissions of irregularly scheduled events if the transmissions are received or exhibited within Connecticut;
Unemployment compensation received from the Connecticut Department of Labor;
From a partnership doing business in Connecticut;
From an S corporation doing business in Connecticut;
From a trust or estate with income derived from or connected with sources within Connecticut;
From a nonqualified deferred compensation plan for services performed wholly or partly within Connecticut;
From reportable Connecticut Lottery winnings.
Certain gains and losses from the sale or disposition of an interest in an entity that owns, directly or indirectly, real property in Connecticut.
Nonresident business income of a business, trade, profession, or occupation carried on in Connecticut and outside Connecticut.
Distributions from pension or retirement plans (such as 401K plans);
Interest, dividends, or gains from the sale or exchange of intangible personal property unless that property is employed in a business, trade, profession, or occupation carried on in Connecticut;
Compensation received for active service in the U.S. military
Dividends from a corporation doing business in Connecticut;
Compensation you received from an interstate rail carrier, interstate motor carrier, or an interstate motor private carrier;
Gambling winnings (other than reportable Connecticut Lottery winnings shown on federal Form W-2G).
Interest you earned from a Connecticut bank (unless earned by a Connecticut business); or
Income you received from business or employment activities in Connecticut that are considered casual, isolated, or inconsequential.

@bpvirginia