topic Second Home in State tax filing

Second Home

cannmum — Thu, 03 Apr 2025 00:10:51 GMT

We sold our 2nd home in Kansas. We are residents in Arizona.

How do I complete the Arizona form 309 credit for taxes paid to another state.

Thanks

Re: Second Home

NCperson — Thu, 03 Apr 2025 00:12:23 GMT

@cannmum you have to file a non-resident KS tax return to report the sale of the home. Once you complete that, turbo tax will determine the credit automatically for the AZ tax return.

Re: Second Home

cannmum — Thu, 03 Apr 2025 01:03:03 GMT

Looks like it did work out - I was just expecting a credit of the same amount for AZ as I'm paying for Kansas.

Thank you for your response.

Re: Second Home

KeshaH — Thu, 03 Apr 2025 01:40:18 GMT

The credit that you get in Arkansas will be limited to the amount of tax that Arkansas would have charged you on that same income. Depending on your income level, Kansas tax rates can be higher than Arkansas tax rates, so you won't have the dollar-for-dollar credit in Arkansas.

Re: Second Home

NCperson — Thu, 03 Apr 2025 02:08:05 GMT

@cannmum most all states work like that. Think of it this way.

Let's say KS had a 10% income tax rate and AZ had a 1% tax rate. Why would AZ give you a 10% tax credit when it would have only charged you 1% had the property been in AZ? AZ will only credit you the amount of tax you would have paid had the property been in AZ.

Re: Second Home

cannmum — Thu, 03 Apr 2025 03:36:40 GMT

Thank you -- that makes total sense! I appreciate your response.

Re: Second Home

cannmum — Thu, 03 Apr 2025 03:37:37 GMT

@NCperson -- thank you. That makes complete sense. I just panicked and figured I did something wrong.

Thank you for clarifying.