On Michigan State Tax - Tax Paid to Other State screen, where does the "Income Taxed by Both Jurisdictions" come from?

[MichWoman]

Resident of Michigan and Non-resident of Oklahoma.  The Tax Paid to Okahoma screen displays a number for "Income Taxed by Both Jurisdictions".  Where does this number come from?

[ErnieS0]

The number comes from your Oklahoma return. If you prepare the nonresident return first, TurboTax will prorate move Oklahoma income and tax to the nonresident credit of the MI return.

Michigan residents are taxed on income earned everywhere, but the state gives you a credit for income taxed by OK.

[MichWoman]

Thank you.  I'm sure the number turbo tax calculates is correct.  If possible, I'd like to know the formula for the calculation so I can understand how it flows.

The number listed on the MI tax return screen "Tax Paid to Oklahoma: Income Taxed By Both Jurisdictions" also appears on MI tax return "Credit for Income Tax Paid to Another State" worksheet, line 1 (Income earned in another state or locality subject to income tax).  I cannot find that number on OK return.  I am guessing Turbo Tax uses a number on OK return and then subtracts something to get the final number listed on the screen.  Any idea what the formula is? Could it possibly be pulling some numbers from the 2020 return?

Non resident return was completed first.

[LenaH]

The formula for income taxed by both jurisdictions is your Oklahoma wages less your Oklahoma itemized deductions less your Oklahoma exemptions. This is on Line 11 and Line 12 of your Form 511NR, respectively. 

The tax comes from the Oklahoma Income Tax, Line 19 of the Form 511NR. 

I did a mock-up return for a single taxpayer making $50,000 in Oklahoma as a Michigan resident. As you can see below, the income taxed by both jurisdictions is $32,000. This is because the itemized deductions are $17,000 and the exemptions are $1,000. The $1,413 flows from the Oklahoma Form 511NR, Line 19. 

@MichWoman

[MichWoman]

Thank you for working it all out.  

In your example, line 14 Oklahoma Taxable Income matches MI Income Taxed by Both Jurisdictions screen.  Mine does not; in mine, the OK return, line 14 Oklahoma Taxable Income is considerably more than what appears on  MI Income Taxed by Both Jurisdictions screen.

I have two sources of income - regular W2 income earned in MI and OK income, which are oil and gas royalties, reported on 1099 MISC, box 2 - which is probably what is adding complexity.

Even though I can't replicate TT's calculation, I'm comfortable it's correct and going with it.