CA Schedule S Tax Credit

[embedded_guy]

Hi,

I live in CA but have income from LLC investment rental properties for 2021 in Arizona, Montana, and Utah. I purchased these other states and filled in the information based on the sched K1 and stated forms I received from the investment LLCs (I think).

I see turbotax put Schedule S for UT in my CA return, but not for the other states that I have tax due.

Is this correct that I would have to manually add other states Schedule S forms?

Thanks.

[DaveF1006 · Accepted solution]

It depends. According to the State of California Schedule S instructions, you would complete a Schedule S if you derived income from sources within any of the following states or U.S. possessions and paid a net income tax to that state or U.S. possession on income that is also taxed by California. If so, you may claim the other state tax credit.

Arizona is not included in the list of states but Montana is, as well as Utah. The question is if there was a state tax paid to the State of Montana that would require a Schedule S? Check your k1 form or supplemental forms to see if there was a state tax paid to Montana. 

[embedded_guy]

Thanks @DaveF1006 for the response.

Didn't make sense why only certain states are included if I'm paying taxes in those other states as well.