Note: The best practice when entering multiple state tax information into TaxSlayer ProWeb is to start with the nonresident return(s) and finish with the resident return. This allows the income tax data from the nonresident state(s) to transfer to the resident return.
California taxpayers may claim a nonrefundable credit for individual income tax paid to another state. The income must be taxed by both jurisdictions. To claim credit credit as a nonresident, the taxpayer must be a resident of the following states or U.S. possessions: Arizona, Guam, Oregon, and Virginia.
When completing an individual income tax return in ProWeb that includes multiple state returns, it's best to prepare the nonresident return(s) first. Once all nonresident returns are finished, print a copy of them, as their information is necessary for the credit in the California return.
To enter taxes paid to another state in the California resident income tax return in TaxSlayer ProWeb, from the California Return menu select:
- Credits
-
Schedule S, Other State Tax Credit
- Select the Other State - Select the other state from the dropdown menu.
- Enter the description of income that is taxed in both states
- Enter the portion of income taxable to California - Enter the income in the other state return that's also in California AGI.
- Enter the portion of income taxable by the other state - Enter the amount of taxable income reported on the other state return.
- Enter the other states Adjusted Gross Income
- Enter the tax on the other state - Enter the calculated tax prior to the application of any withholdings or other payments
Additional Information:
California State Tax Information
CA FTB: Other State Tax Credit Information
CA FTB: Forms and Publications
While TaxSlayer Pro strives to make the information and links contained on this page as timely and accurate as possible, TaxSlayer Pro makes no promise or guarantee about the timeliness, accuracy or completeness of the contents of this page. The information contained on this page is for general information and is not intended to be tax advice. The user is also encouraged to review the underlying state resources and publications.