How do I find "Credit for Tax paid to another State" (Virginia Resident)?

[midnsingh]

I'm a Virginia resident 100% of the time. I worked for a company in 2021, who mistakenly withheld state taxes for my first pay period for the State of New York (I'm assuming that they did this because they are based in New York and outsourced to a payroll company). I was not present in New York at any point in time during 2021...

I've created 2 returns, a non-resident for New York, and a resident for Virginia. To complete my Virginia return, TurboTax is asking me to enter "Amount of tax" into "Schedule OSC (1)". Where do I get this amount?

Virginia's tax.gov website indicates that I can't just go off of my W2 and that this would have to come from the completed non-resident return for New York States. So assume that this information is somewhere in TurboTax?

[ThomasM125]

You can find the New York tax by looking at the tax summary report for New York. You need to be working on the New York return for the summary to show up though.

While working on your tax return in TurboTax:

1. Click on the Tax Tools menu option on your left menu bar
2. Click on Tools
3. Choose the View Tax Summary option

To see a summary of your state tax return, make sure you are in the state section when you follow the steps

[midnsingh]

You are a HERO!

What field do I actually pull the amount from on the "Tax Summary" report? Is it "Total Payments and Credits"?

Thank you.

[DMarkM1]

No.  It should be the "Allocated NYS tax."  

[midnsingh]

In the "Summary of your New York Taxes" that @ThomasM125 mentions, thats not a line item. Are you suggesting that I get the number from somewhere else? If not, in the form the ThomasM125 mentions the choices (fields with data) I have are:

Federal Adjusted Gross Income

Recomputed Federal Adjusted Gross Income

New York Additions

New York Adjusted Gross Income

Itemized or Standard Deduction

Sales or Use Tax

Total Payments and Credits

Refund

Thank you

[LenaH]

You can get the allocated NYS tax amount on the screen Let's Review Your New York Numbers or the Summary of your New York Taxes screen. The Let's Review Your New York Numbers screen is at the very end of your New York state interview. As you can see from the screenshot below, it will list out your allocated NYS tax for the year. This will be the amount you use for your Virginia credit of taxes paid to another state. The Summary of New York Taxes screen can be seen from following the instructions provided above by @ThomasM125. 

For your tax situation, it is probable that you do not have any allocated NYS tax because New York income tax was mistakenly withheld. This would eliminate your tax liability for NY if you allocated zero of your income on your nonresident return. In that case, you would enter zero of taxes paid to another state. 

@midnsingh

[midnsingh]

@LenaH thank you for the response. I cannot find the Let's Review Your New York Numbers so I'm going off of the Summary of New York Taxes screen.

If the field that you have highlighted in your form, "Total New York State Taxes" is blank, then should I assume 0?

If so how does this tie back to the original question of this thread, which is, where TurboTax is asking me to enter "Amount of tax" into "Schedule OSC (1)". Where do I get this amount?

Is the amount that I should use, $0 (which is the value in the "Total New York State Taxes" field) or $799 (which is the amount that was mistakenly withheld)?

thank you!

[JillS56]

Yes, you should enter $0 as that is what was actually paid.

[midnsingh]

Thank you. And just to clarify, the $799 that was withheld wouldn't count as what I actually paid?

[DawnC]

Oh, you paid the $799 to NYS.    You should have $0 wages allocated to NYS and your NYS nonresident return should show a refund of $799 as Lena explained above.   Go back through your nonresident return and try allocating zero wages - that should generate a NYS refund and in that case, no entry for 'tax paid to another state' will be necessary.    

[midnsingh]

Thanks @DawnC.

So to clarify once again. I've done my NYS non-resident return and I'll be getting a refund of $799. So thats settled I think.

For Schedule "OSC CG" "Credit for tax paid to another state", is my understanding correct in that the amount entered for "amount of tax" is 0 because I'm getting the refund?

Thank you everyone.

[LenaH · Accepted solution]

If you have no allocated income to New York, then you will get a refund back of $799 from New York State.

It is correct that the amount entered for your Schedule OSC CG would be zero. You cannot get a credit of taxes paid to another state if you are due a full refund from that other state. 

@midnsingh

[midnsingh]

Okay! thank you so much. I think I finally understand 🙂