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We moved end of January 24’ to new state and new job. When filling out both old and new state returns it asks date of residency (which I entered), later on it asks about double taxed income for the purpose of a credit. My question is, would any of it truly be double taxed if having moved/started new job? I could see if it were taking into account the total amount made for the entire year, but is it?
It automatically input the dollar amount made from each W-2/state, but would I need to edit both to “0” for the double taxed section?
The more I read, the more it doesn’t make sense…
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If you are filing multiple state tax returns, such as a resident and nonresident state tax return, your resident state will generally give you a credit for tax paid to the non-resident state if the income was actually taxed by both of the states.
This is done in TurboTax. You do not have to adjust anything. It will be an adjustment on your resident state tax return.
Some states have reciprocal tax laws. A reciprocal agreement is an arrangement between two or more states that allows residents of one state to work in another state without having to pay state income taxes to both. Under these agreements, employees only pay income taxes and file a tax return in their home state.
You can click on this link to check if your state has reciprocity with another state: Which states have reciprocal agreements?
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