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Level 6

Do estimated state taxes for one state also flow to another state's return

I live in  DC but have to file in California as well since my law firm withholds estimated taxes for CA.  I enter the estimated CA taxes in my Federal return and they flow to my CA return.  I have assumed that they do no flow to my DC return so I enter them manually on the DC return on the other state taxes portion.  Am I correct or am I double counting them in the DC return.
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Level 7

Do estimated state taxes for one state also flow to another state's return

The estimated tax payments for CA are entered in the Federal section, you are correct.

Then they flow to the CA return and you are given a credit for the taxes paid to CA.

The do not flow to the DC return as they are CA taxes withheld, not should they be entered anywhere on the DC return.   You are double counting if entered again on the DC return.  Only DC estimated tax payments or other DC taxes withheld on W-2's (or 1099's) would flow to the DC return. 

6 Replies
Level 7

Do estimated state taxes for one state also flow to another state's return

The estimated tax payments for CA are entered in the Federal section, you are correct.

Then they flow to the CA return and you are given a credit for the taxes paid to CA.

The do not flow to the DC return as they are CA taxes withheld, not should they be entered anywhere on the DC return.   You are double counting if entered again on the DC return.  Only DC estimated tax payments or other DC taxes withheld on W-2's (or 1099's) would flow to the DC return. 

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Level 6

Do estimated state taxes for one state also flow to another state's return

Thanks.  But I assume those amounts and the income associated with CA should be entered to the DC return as taxes paid in another state just like I add those figures for the other 10 states for which a consolidated return is filed by the law firm? (No estimated taxes for those 10 - tax is paid outright by the firm and deducted from me. Also no state returns by me.)  I shouldn't be paying taxes in DC for income that is taxed in CA just like the other 10, correct?
Level 7

Do estimated state taxes for one state also flow to another state's return

CA will tax the income also as a non-resident state.  Then you do the resident return last (DC), and you will get a credit for taxes paid to another state (on income that is being taxed twice (the CA income).
Level 6

Do estimated state taxes for one state also flow to another state's return

Thank you.  You seem knowledgeable so maybe you can answer my other question (posted earlier).  Should I be entering the taxes for the 10 states for which a the firm files consolidated returns on my Federal return?  The only place I can see to enter them is in estimated taxes paid.  If I enter them there I assume I should just put a figure in the fourth quarter for each state.
Level 7

Do estimated state taxes for one state also flow to another state's return

Let me post the answer with the other question you are already asked.
Level 6

Do estimated state taxes for one state also flow to another state's return

Thx