Note: The best practice when entering multiple state tax information into TaxSlayer Pro is to first create the nonresident return(s) and finish with the resident return. This allows the income tax data from another state to transfer to the resident return. In TaxSlayer Pro, when creating the resident return you are prompted to pull in other state tax info, and by selecting "Yes" this info is pulled in and the credit for taxes paid to another state is automatically calculated.
Alabama residents may claim credit for income taxes paid to another state when income is taxed by both jurisdictions.
Before starting the Alabama return, prepare the nonresident return(s). Once all nonresident returns are finished, create the Alabama resident return. TaxSlayer Pro will prompt to import any other state tax information found. Selecting Yes at this prompt will automatically calculate the credit for taxes paid to the other state.
Otherwise, to view or adjust the credit for taxes paid to another state in the Alabama individual tax return in TaxSlayer Pro, from the Alabama Resident Menu select:
- Total Payments
- Total Refundable Credits
- Other State Tax Credits
Additional Information: