confused about filing in multiple states and getting proper out of state tax credit

[rswelter]

my son is  PA. resident/full time student in MA. 

made money in both Ca. and MA last year. the PA. return is only taking the tax credit from the higher earning job in Ca. and ignoring the tax paid from the MA. job?  he is getting refunds from both CA. and MA. 

I would think TT Deluxe would also see the MA> tax paid and combine out of state taxes paid for a bigger credit.

PA. also has local EIT and is asking to report the out of state income from the PA40 GL and out of state tax paid.

I fear TT is limiting the tax credit for the local EIT as well.

I dont know how to fix this issue.  thanks everyone.

[MaryK4]

Did you add the Massachusetts tax information in the Pennsylvania return?  It may not have been transferred by TurboTax because he filed as a Massachusetts resident.  

Did he pay California or Massachusetts local taxes?  

[rswelter]

thanks for reaching out.

Both W2 were entered in the Federal and imported to each state.  He paid state taxes in each state but not local.

TT mentions a local PA EIT is necessary but does not offer the forms. The problem is that PA is showing both W2 but not adding the tax paid to the second state (MA)?? 

this is also a problem for the PA local EIT since we are not getting all of the possible tax credit since the PA40 GL only has the 1 state tax listed to be used as a tax credit. 

Additional question:  In this example can my son deduct the amount of tax paid to another state if he gets a net refund?

thanks again!

[KeshaH]

Is he getting a refund of all of the taxes that he paid to Massachusetts? If so, he wouldn't be eligible for the credit.

If he's not getting a refund of everything he paid to Massachusetts, the next thing to check is the type of return he's filing for Massachusetts. Is it a resident of non-resident return? If it's a resident return, he wouldn't get a credit in Pennsylvania. The credit is only for taxes paid to a nonresident state.

If he's not getting a refund of all of his taxes and he's filing a nonresident MA return, did you add the MA information on the PA return for the other state tax credit? The credit is calculated on a per-state basis. The amount for CA and MA won't be added together. They'll each have their own Schedule G/L.