Taxes paid to another state

[anonymous71]

I am really confused by this. Moved from NY halfway through the year to NC. Prior to moving to NC my spouse earned some income in NY from the NC employer that is reported on W2 as NC income. After relocating to NC, spouse continued to work for old NY employer as well as NC employer thus making income in NC from a NY source. That income shows up on his other W2 as NY income. I’ve filled in both forms completing the nonresident state first and done the appropriate state allocations but I am wondering how to file for a credit for taxes paid to another state? This doesn’t seem to populate automatically in the taxes paid to another state screen… how do I figure out what to fill in these screens?

[LindaS5247]

This should be calculated by TurboTax properly, and show up on your resident and nonresident state tax returns. 

For the year of your move, you’ll file a part-year resident tax return in each state but you won’t have to pay double the state tax. Each state taxes the income that was earned in that particular state, but most states don’t tax the income earned in the other state. If that’s the case for you, you’ll divvy up your income between the two state tax returns. 

A few states require that you report all your income for the year to that state if you are a resident at the end of the year. If you have to report some of that income to your old state as well, you may be worried that you are paying double state tax on that income. But you do not, on the tax return for your new state, you can claim a tax credit for tax paid to your old state on the same income. That tax credit will offset the extra tax on the income you had to report to both states.

Per the North Carolina State Revenue site it says...After completing the return of the other state (NY), complete your North Carolina return and include all income from inside and outside the State.  (This would occur when you enter all of your W-2's into Turbo Tax as income and should flow properly to your state(s) tax returns.)

Compute your tax as though no credit is being claimed.  Complete Part 1 of Form D-400TC to determine the allowable tax credit.  A common mistake is to enter on Line 6 of Part 1 the total tax withheld by the other state or country.  The amount entered on Line 6 of Form D-400TC must be the tax paid to the other state or country less any refund received, or expected to be received, from the other state or country.  

The credit cannot be more than your North Carolina tax liability; therefore, you must complete Part 3 of Form D-400TC to limit the credit to the tax liability.

Did this come into play?  It's hard to answer without seeing your tax returns.

For more information, see the Personal Tax Division Bulletins.

You can preview your state tax returns by doing the following:

For TurboTax online you can view your entire before you e-file by the following steps:

1. Sign in to your TurboTax account
2. Open or continue your return
3. Select Tax Tools from the menu (if you don't see this, select the menu icon in the upper-left corner)
4. With the Tax Tools menu open, you can then:
   • Preview your entire return: Select Print Center and then Print, save or preview this year's return (you may be asked to register or pay first)
   • View only your 1040 form: Select Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu

For TurboTax CD/Download software you can preview your entire return before you e-file by following these steps:

1. With your return open in TurboTax, select Preview from the File menu at the top. (If you don't see "Preview," open your return, not just the program).
2. In the pop-up window, choose the set of forms you wish to see (all official forms, specific forms, etc.) and select Preview.
3. Scroll down to view all the forms if you chose to preview multiple forms.

Click here for "How to file if I moved to a different state last year."

If this does not help please feel free to come back to TurboTax Community additional questions or click here for information on Turbo Tax Support.  You can connect with a Live TurboTax Agent and share your screen.

[anonymous71]

1. How do I determine how much tax was paid to either state? There is no screen that I can see that summarizes this. I don’t seem to be able to access my d-400 from the print screen without paying?

[TeresaM]

To confirm your tax due to a particular state, you can view a Tax Summary by clicking on Tax Tools, on the left menu

• Select Tools 
• Then select View Tax Summary, first on the list under Helpful Links.  This will show basic information about the return.
• At the top it will list Tax Summary for federal or the name of the state, if it is a state Tax Summary
  On the left you can select the summary for the state you wish to verify the amount of tax due

The example below is for Virginia but all of the states have the same format.

[anonymous71]

Would there be a reason I can’t see this? Only my federal return shows up under tax summary I don’t see what you show. I’ve completed both NY and NC tax returns just haven’t paid and filed yet. 

[DMarkM1]

Click the "Preview my 1040" option and the state summaries should then show up as options.