Foreign tax credit

[vhulikal]

Dear Sir / Madam,

I have entered in TurboTax the interest earned and the tax paid in India on Bank accounts. I qualify for foreign tax credit (as the tax I paid in India is < $300) on the federal return. But I did not get foreign tax credit on my California State Tax.

Do I not qualify for the same on the CA state tax? If not, why?

Thanks,
Vishvanath

[MargaretL · Accepted solution]

No, you do not get a credit on CA tax return in addition to getting a credit on your federal tax return. The foreign tax credit goes on the federal return, as you have correctly noticed.  The net federal income (after taking foreign tax credit) is then transferred to your state return. You cannot get a credit again on CA return because it is already reflected in your net income. You are asking for credit twice on your taxes that you paid only once, that is not allowed.