Non resident income California and New Mexico
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
miller4mi
Returning Member

Non resident income California and New Mexico

My home state is Arizona, but I worked as a travel nurse in California and New Mexico. I have entered State tax returns for Arizona (resident) and California and New Mexico (non-resident). The Arizona state tax return is showing a balance due, and not applying a tax credit for the taxes I paid to California and New Mexico.  Should I have done the non resident returns before entering my resident state return?  I tried to delete the Arizona (resident) return and start over but there is no option to do this. 

3 Replies
DavidD66
Employee Tax Expert

Non resident income California and New Mexico

Yes, you should prepare your non-resident states first, then add your Arizona resident return.  To delete a state return in TurboTax Online, while logged in to your return:

 

  • Click on "State" on the hand side of your screen
  • You should be on the page that says "Let's get your state taxes done right"
  • In the upper center of the page, click on "Your State Returns"
  • You should see a list of states in your return, with the option to Delete.  Cick on Delete and confirm that's what you want to do.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
TomD8
Level 15

Non resident income California and New Mexico

@miller4mi -- Here is the complication in your situation:  California and Arizona are "reverse-credit" states.  That means that your non-resident state of CA will give you a credit for the taxes paid to AZ on the portion of your income taxed by both.  ("Reverse-credit" because normally it's the home state that gives the credit.)

 

Therefore you should complete your home state AZ return before you do your non-resident CA return.

 

CA currently has reverse credit with Arizona (AZ), Guam (GU), Oregon (OR), and Virginia (VA).

 

See "California Nonresidents" in this reference:

https://www.ftb.ca.gov/forms/2020/2020-540-s-instructions.html

**Answers are correct to the best of my ability but do not constitute tax or legal advice.**

miller4mi
Returning Member

Non resident income California and New Mexico

Hi thanks for this info.  I am using a downloaded version, not the online version.

Dynamic AdsDynamic Ads
v
Privacy Settings