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.
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.
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@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: