topic Cannot Delete State Tax Credit in State tax filing

Cannot Delete State Tax Credit

David65 — Tue, 14 Apr 2020 02:51:05 GMT

I have an odd situation. I moved from CA to HI on 1/15/2019. To qualify for HI's lower property tax rate for residents in 2021, I have to file a full year return for HI for tax year 2019. And, of course, I have to pay CA for the 15 days I was in CA. I owe CA $300 for those 15 days. So, TurboTax wants to credit me the $300 on the HI tax form. But if I take the $300 credit, HI may claim that I have not submitted a full year return and require that I pay nonresident property tax for 2021. I tried to delete the CA State Tax Credit on the HI return, but TurboTax keeps putting it back.

Re: Cannot Delete State Tax Credit

BillM223 — Tue, 14 Apr 2020 20:07:57 GMT

"But if I take the $300 credit, HI may claim that I have not submitted a full year return "

I don't live in Hawaii, but I don't think this will be a problem.

After all, it is perfectly possible to owe tax to a state that you are not a resident of.

For example, if you lived all year in Hawaii, but did some work in California, you would owe tax to California even if your domicile was in Hawaii all year.

I can't address the issue of if you qualify for the lower property tax rate (we deal primarily with income taxes), but I don't think showing a tax paid to another state alone will be an automatic trigger.

Re: Cannot Delete State Tax Credit

David65 — Thu, 16 Apr 2020 01:36:24 GMT

Thanks for your reply.

I should have clarified that if I take the credit, I would have to send a copy of my CA return to HI, and the CA return clearly states that I was a part-time resident of CA in 2019 (albeit for 15 days). Then HI may respond that since I took a $300 credit on my HI return for being a part-time resident of CA, I should file a part-time resident tax return for HI. Then I would not qualify for Maui's Home Exemption per https://www.mauicounty.gov/DocumentCenter/View/3188/[product key removed]tion, if you are curious.

Btw, I found that while I cannot delete the State Tax Credit in TurboTax, I can edit it and change the credit to $0. Then TurboTax does not put the credit on my HI return and does not include my CA return with my HI return.