I don't understand the double-taxed income form for state return. One column has State A (wages, tax owed, etc.) and one column is State B. How do I know tax owed?!

[beck-musarra]

This form is generated when I try to complete state B's return.  Until I complete this form, I cannot know how much tax I owe to state B.  BUT, I need to complete the form to determine how much tax I owe to state B.  It's a vicious loop!

[Critter-3]

Can we have "Which state are we talking about? "    for $100 Alex ???

[Mike9241]

under Turbotax you need to complete the out-of-state return before you complete the resident state return.

you enter all your federal data, then do the non-resident return. column, then you complete your resident state return.   what states?  this way Turbotax will calculate the non-resident state taxes and carry this info back to your resident state so you get credit for the double-taxed income.

i should add that if you have wages from a non-resident state that has a reciprocal agreement with your resident state, then you file the non-resident state only if there is withholding - to get it back. otherwise, you just file in your resident state unless you have non-wage income in the resident state such as rental income.

see this link

https://www.thebalance.com/state-with-reciprocal-agreements-3193329 

[beck-musarra]

No matter which state I choose, the form remains the same... and equally opaque.  To the extent it matters, I'm completing a non-resident form for DE and a resident form for PA (state B).

[beck-musarra]

Thanks for your response!

I totally understand that I'll need to wait for my non-resident (in this case, Delaware) return to find out how much I owe Delaware.

But the form (which comes up when I'm completing the PA return) has another column for Pennsylvania.  It requires me to fill in what my taxes owed to Pennsylvania are on that income.  Of course, can't know that until I complete the form and complete the return.

[MarilynG1]

If you are a PA resident, all your income is taxed in Pennsylvania.

You will get a credit for tax paid to your non-resident state on the amount of tax PA says you owe.

If you can see the amount of tax you paid to each state on your W-2 (as well as the income allocated to each state), you should be able to fill out the allocation form for both states.  

Click this link for instructions on How to File a Non-Resident State Return. 

This article has detailed info on Filing in Multiple States that may help you.