Non resident income California and New Mexico

[miller4mi]

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. 

[DavidD66]

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.

[TomD8]

@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

[miller4mi]

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