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For taxes paid to other state, do I use the amount of taxes I paid to other state or the amount of taxes that are owed to the other state?

 
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6 Replies
AnnetteB6
Employee Tax Expert

For taxes paid to other state, do I use the amount of taxes I paid to other state or the amount of taxes that are owed to the other state?

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.

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For taxes paid to other state, do I use the amount of taxes I paid to other state or the amount of taxes that are owed to the other state?

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

 

For taxes paid to other state, do I use the amount of taxes I paid to other state or the amount of taxes that are owed to the other state?

Is the tax liability what is owed to the other state or what I actually paid them?

ToddL99
Expert Alumni

For taxes paid to other state, do I use the amount of taxes I paid to other state or the amount of taxes that are owed to the other state?

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.

For taxes paid to other state, do I use the amount of taxes I paid to other state or the amount of taxes that are owed to the other state?

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?

DMarkM1
Expert Alumni

For taxes paid to other state, do I use the amount of taxes I paid to other state or the amount of taxes that are owed to the other state?

Correct.  The total tax liability paid to the other state, whether as withholding or paid with filing.  

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