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The tax liability shown on the other state's tax return is the amount to use to calculate the credit paid to another state.
If you complete your non-resident state return first, then TurboTax will automatically calculate the credit for you on your resident state return.
Because I have to file two states, I'm filing my IL on their website. So I want to be sure I put the right amount
Is the tax liability what is owed to the other state or what I actually paid them?
Your tax liability is the total tax you owe to a state, not the amount you had to pay them when you file the return
Some portion of that total may have been withheld and paid over the year; any unpaid balance is paid when you file your return.
For example, if your tax liability is $1000, but $800 was withheld by your employer, then you will owe $200 when you file your tax return.
ToddL99, so from your example, "if your tax liability is $1000, but $800 was withheld by your employer, then you will owe $200 when you file your tax return", the number I enter as "Tax paid to other state" is $1000, correct?
Correct. The total tax liability paid to the other state, whether as withholding or paid with filing.
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