Do I need to put my state income taxes on my w-2 from my old state onto the Out of State Credit worksheet I am filling out to complete my Arkansas state taxes?

[kkgl2]

I put zero at first because it is what it originally showed, however, it keeps telling me to recheck it. Would I put just my previous state income tax or federal income tax?

[ErnieS0]

It depends on why you have income tax withheld from your old state.

If you are working in a different state from where you live and are filing a nonresident return, use the income and tax numbers from your nonresident state to claim the Out of State Credit, not $0.

If you moved and your employer kept withholding tax from your old state, then only report the income you earned while you lived and worked in your old state.

In that case, you would file a nonresident tax return with $0 income and get back all your withholding. You would not complete the Out of State Credit worksheet because you are getting back all your withholding.

If you moved to a new state in 2021 but some wages from your old state were still taxable, such as unpaid vacation or sick time, then you would report those wages on a nonresident return and claim a credit on the Out of State Credit worksheet.