I am trying to file my return, but I am getting told I owe Georgia state tax when the Other State Tax Credit should make my state tax = 0$. I paid more in out of state tax than the tax I would have had to pay in Georgia so I should pay 0 in Georgia State tax with the other state tax credit, but it is not being properly calculated. How do I fix this issue?
I am currently in Spain so I can not call the support number and use the free version so live chat is not an option.
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The credit for taxes paid to another jurisdiction does not always cancel out tax- if your resident state has a higher tax rate you have to pay the difference. Add your nonresident state to this string and someone may be able to check if there is a rate difference.
The two other states are Michigan and Illinois, but Georgia has a standard deduction of $12,000 so I effectively owe 5.39% on a very small portion of my total income and I paid far more in other state tax than that small portion.
The Georgia rate is 5.39%, the Illinois rate is 4.95%, the Michigan rate is 4.25%. The tax credit applies to the comparable income, regardless of the state exemption amount (The exemption reduces the amount of income taxed, but the 5.39% applies to the taxable income. @aecasas
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