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Returning Member
posted Feb 14, 2023 11:21:45 AM

Credit for tax paid to another state when it involves more than one state

I need clarification regarding "credit for tax paid to another state" when it involves more than one state.  

 

In 2022, I was a part year resident in Virginia from 1/1 to 3/31 and a part year resident in South Carolina from 4/1 to 12/31.  I received rental income from a Colorado source in 2022 and need to file a nonresident return in Colorado.  Since the rental income from Colorado is taxable income in Virginia and South Carolina, can you receive a credit in Virginia and South Carolina for the tax paid to Colorado.   

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3 Replies
Expert Alumni
Feb 14, 2023 11:44:03 AM

Yes, you will have to file all three state tax returns and do an apportionment to both Virginia and South Carolina.

Multiple States—Figuring What's Owed When You Live and Work in More Than One State

Returning Member
Feb 14, 2023 12:04:08 PM

@JohnB5677  Is "apportionment to both Virginia and South Carolina" addressed when you answer the questions in the step by step mode where it asks about portion of earned income earned while a resident of the said state?

Expert Alumni
Feb 14, 2023 2:21:52 PM

Yes.  In order for the allocation type questions to appear, its important that you indicate in the My Info or Personal Info section of TurboTax that you earned income in other states and then select the states where the income was earned.  It is also important to enter your residency information because it changed multiple times in 2022.  

 

@kal571