I am have a State of Conn return. I am a non-res and live in MA. It is saying "Enter the total am of 5% income on which you paid taxes to Conn". What does this mean?

[ellensinglefile]

It is saying "Enter the total amount of 5% income tax on which you paid taxes to Connecticut."  What does this mean? What do I do?

[DanielV01]

Massachusetts is somewhat convoluted in how it puts this on the return.  The question is really simpler:  How much income did you earn for which you are being taxed in Connecticut.  Massachusetts will then calculate a credit on the amount of tax you pay to Connecticut on this double-taxed income (income taxed by both states).  Your credit will be the lower of what Connecticut taxes the income or what Massachusetts taxes the income.

[attackmom]

It asks for the total amount of 5% income on which taxes were paid to CT. Isn't this the wages that are listed on the W-2 from CT? If not, where do we get that figure from? Is it Line 11 of our Federal 1040 which is also Line 1 of the CT-1040 NR/PY?

[AmyC]

If you only have w2 income from CT, then that is what you enter. CT has a complicated system as seen in How Nonresidents and Part-Year Residents are Taxed. You want to enter income that is being double taxed. If you are a nonresident, only your wages, capital gains from sale of property in CT, business income, things that happen in CT are taxable to CT.

[attackmom]

 I know you need to complete the CT  form before finishing your MA taxes in order to get the figure for the total tax paid to CT, which Turbo Tax states is not what is listed on your W2 but where exactly do you get the 5% total income figure from? Line 7 of the CT NR/PY Form? Directly from your W2 from CT or what? 

[DMarkM1]

It sounds like you are working the credit for taxes paid to another state in the MA interview.  MA taxes wages, salaries, pensions, business income, long term capital gains at 5% and short term capital gains at 12%.  The total CT 5% income will be the total CT income from the 5% sources (according to MA); in your case that will be the W2 wages CT box 16.  

You will also use the tax liability to CT on that 5% income source.  The TurboTax warning is stating your CT tax liability is not necessarily the withholding listed on your W2 but the actual tax liability from your CT nonresident tax form.  This should be line 16 on your CT NR form 1040.  

In TurboTax online products you can "View the CT tax summary" using the steps below.  You will find the income and the tax liability numbers there.

1. Select "Tax Tools" in the left hand menu
2. Select "Tools"
3. Select "View Tax Summary"
4. Select "Preview My 1040" in the left hand menu

5. Select "CT Tax Summary"