> If you created your resident state return before you began work on your nonresident state return, TurboTax will not pull over any tax amounts (credits) from your nonresident state return.
Oregon and California agreed to use Reverse Credit, so the income tax computed by the resident state (Oregon) is applied as credit to California's nonresident income from the rental house which often becomes $0.
> To resolve this issue, you will need to remove the resident state return and then create a new resident state return.
A s Reverse Credit is used, the income tax of the resident state (Oregon) is not affected. Do not remove its tax return.
> Doing this has the same effect as entering your non-resident state first, which is how the returns should be entered.
The state tax forms for the resident state should be completed to make the credit passed to the forms of the nonresident state. If you use 2021 Turbotax, the changes of data in the federal tax forms and/or resident state tax forms are automatically passed to the nonresident tax forms although some previous entries must be revisited.
> Depending on your state, resident and non-resident incomes may be allocated automatically according to your Wages & Income entries on your federal return.
The rent income is automatically allocated to the state based on the address of the rental house.
> In some cases, we'll prompt you to allocate income between your resident and non-resident state. If asked to do so, you will allocate your rental income to California and your other income to your resident state.
A capital gain can be assigned two or three ways. One way is to compute it based on the number of days your lived in the nonresident state and that you lived in the resident state.
