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Level 2
posted Apr 18, 2023 10:09:59 AM

State taxes paid in 2 states

Hi,

 

CO resident seeing clients in CO and Oregon. Oregon tax owed is $522 more than the state tax credit given from CO for paying state taxes to another state. Should the amount paid to OR be equal to the credit given in CO? Or, is it normal for CO not to give 100% credit to taxes paid to another state?

 

Thank you!

0 3 208
3 Replies
Expert Alumni
Apr 18, 2023 10:26:16 AM

If you have a W-2 showing State Tax paid in two states, prepare your Non-Resident State first.  Report only your Oregon income, and Tax Paid as shown on your W-2.

 

If Oregon tax owed on Oregon income is more than the Oregon Tax you already paid, enter the total amount of Oregon Tax Due in your Colorado Resident return as 'Tax Paid to Another State'.  Colorado should give you credit for the total amount of Oregon Tax Paid (or due). 

 

Here's more info on How to File a Non-Resident State Return.

 

@jfjffjfj 

 

 

 

 

Level 2
Apr 18, 2023 11:16:16 AM

Hmm.  That is what I did. However, it looks like TT then did its own calculation and is giving me a tax credit below the amount paid to OR.

Expert Alumni
Apr 18, 2023 11:27:34 AM

You get credit for the lower state tax on the lowest taxable amount.

  • Each state calculates taxable income differently. 
  • Each state has its own tax rate/ system.
  • You get the lowest of both categories as a tax credit.

Check your form for the credit. You may need to enter additional information.