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New Member
posted Jun 4, 2019 7:51:11 PM

What numbers do i put in for income also taxed in a non-resident state

i was a resident in virginia but worked in california

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1 Best answer
Expert Alumni
Jun 4, 2019 7:51:12 PM

It depends, but in this case, California and Virginia have a special arrangement.  Virginia does not give you a credit for the tax you pay to California, but rather, California gives you a credit for the tax you pay to Virginia.  It is a kind of reverse reciprocal agreement:  if you live in Virginia, but work in California, California allows Virginia to tax you first, and will give you a credit for the tax you pay to Virginia on that income, and then, if the credit to Virginia does not cover all of the California tax, then California will get the difference.

Normally, you would prepare your nonresident return first.  But for this special situation, you will want to prepare your Virginia return first, so that TurboTax calculates the credit on your California return.  Here is a Virginia webpage that provides a little more information (Click on link and scroll down to Special Circumstances:(  https://www.tax.virginia.gov/credit-for-taxes-paid-to-another-state

1 Replies
Expert Alumni
Jun 4, 2019 7:51:12 PM

It depends, but in this case, California and Virginia have a special arrangement.  Virginia does not give you a credit for the tax you pay to California, but rather, California gives you a credit for the tax you pay to Virginia.  It is a kind of reverse reciprocal agreement:  if you live in Virginia, but work in California, California allows Virginia to tax you first, and will give you a credit for the tax you pay to Virginia on that income, and then, if the credit to Virginia does not cover all of the California tax, then California will get the difference.

Normally, you would prepare your nonresident return first.  But for this special situation, you will want to prepare your Virginia return first, so that TurboTax calculates the credit on your California return.  Here is a Virginia webpage that provides a little more information (Click on link and scroll down to Special Circumstances:(  https://www.tax.virginia.gov/credit-for-taxes-paid-to-another-state