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Level 1
posted Feb 23, 2020 1:01:41 PM

Nonresident taxes paid actually being refunded, how to note that in resident state tax form?

My D had a summer job in MA and state taxes were withheld. However, in filling out her tax return, it turns out that she will get all the money back.

When we did her PA resident taxes, TurboTax credited her for the MA taxes withheld. So her final PA tax bill was smaller (without the MA tax amount withheld). Yes, she did pay MA taxes but she will be getting it all back. How do we note that in her PA resident taxes?

I think I know the answer but want to confirm. On the screen "any double-taxed income from MA" where it shows your gross compensation and tax due to MA, if I check the box that says "No, I don't want to include this credit in this tax return" then TurboTax calculates the full correct amount owed. 

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1 Replies
Expert Alumni
Feb 23, 2020 1:56:09 PM

Yes, correct.  If you want the PA tax return to appropriately exclude any credit for taxes paid to another state, you select the "No, I don't want to include this credit in this tax return".