What is double-taxed income in "Summary of Taxes Paid to Other States"?

[kb115_]

The credit is automatically calculated, but I was wondering if it's possible that Turbo Tax miscalculated the "Double-taxed income" amount after completing the nonresident return?

The "Tax Paid" amount it transferred over was correct, however the Double-taxed Income amount it transferred over seems odd, and I wonder if I need to correct it.

It's an amount that's not "Total 5% income" nor "Taxable 5% income" from the Summary of Taxes (MA non-resident, I am NJ full-year resident).

Instead. when I preview the PDF of my taxes, I see that that the amount Turbo Tax automatically calculated as Double-taxed Income is from Line 3 from 2023 Schedule NTS-L-NRPY, which was Total 5.0% Income minus an Adjustment to income (which was Line 10 of 2023 Schedule Y ---> Student Loan Interest).

I was under the impression that Double-taxed income was supposed to be the "Taxable 5% income" amount?

[AmyC]

Since each state has their own rules, the income from the nonresident state is often adjusted for the resident state rules.

• Each state calculates taxable income differently. 
• Each state has its own tax rate/ system.
• You get the lowest of both categories as a tax credit.

You get credit for the lower state tax on the lowest taxable amount.

[kb115_]

I guess my question is, did Turbo Tax make a mistake when it auto calculated my double-taxed income ... and should I edit it?

When I go through Tax Tools and view the Tax Summary of my MA return, I see info for

• Total 5% Income (which is just MA wages),
• Total 5% Deductions,
• Total 5% Exemptions,
• Taxable 5% Income .... which is from deducting both the aforementioned Deductions and Exemptions from Income

I know how Total 5% Exemptions was calculated. And I know how Total 5% Deductions was calculated.

Total 5% Deductions consisted of:

• "Retirement Payments" (in my case, withheld Social Security Tax and Medicare Tax )
• Student Loan Interest
• Undergraduate Student Loan Interest

The double-tax income Turbo Tax calculated was simply MA Wages - Student Loan Interest (just Student Loan Interest, not Undergraduate Student Loan Interest)

I can see on my Form 1-NR-PY through lines 12-25 :

• TOTAL 5.0% INCOME
• 5.0% INCOME AFTER DEDUCTIONS
• 5.0% INCOME AFTER EXEMPTIONS
• TOTAL TAXABLE 5.0% INCOME

Should Double-Taxed Income actually just be the Taxable 5% Income OR Total 5% Income (which was MA wages)?

Did Turbo Tax make a mistake?

@AmyC