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I paid $3,052 in NY state income taxes as a nonresident but turbo tax only allowed $2,935 as a credit in my resident tax state (Georgia), why was the amount lowered?

 
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1 Reply
DMarkM1
Expert Alumni

I paid $3,052 in NY state income taxes as a nonresident but turbo tax only allowed $2,935 as a credit in my resident tax state (Georgia), why was the amount lowered?

The credit for taxes paid to another state equals the state tax paid to GA on the income that was double taxed.  Another way to look at it is GA is not taxing you on the income that NY taxed you on.  Since the GA state tax rate is lower than NY, the credit will be less than the NY taxes actually paid. 

 

 

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