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Desktop: District of Columbia - Credit for Taxes Paid to Another State

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.

District of Columbia (DC) residents may claim a nonrefundable credit for taxes paid to another state. The income must be taxed by both jurisdictions. This credit is for state income taxes imposed on a taxpayer's income; it does not apply to foreign income taxes.

Before starting the DC return, prepare the nonresident return(s). Once all nonresident returns are finished, create the DC resident return. When starting a DC resident return, Schedule U will appear first, prompting manual entry of credit information. To use the automatic calculation instead, exit this menu and follow the steps outlined below.

To enter credit for taxes paid to another state in the DC individual tax return in TaxSlayer Pro, from the DC Tax Return Main Menu select:

  • Nonrefundable credits
  • Other Nonrefundable Credits (Schedule U)
  • Out of State Credit
  • 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.
    • Selecting No at this prompt will require manual entry of the credit for taxes paid to the other state.

Additional Information:

District of Columbia Tax Information

Desktop: Which state(s) does the District Of Columbia (DC) have a Resident Reciprocal Agreement with?

DC OTR: Individual Income Tax Forms and Instructions

TaxSlayer Pro strives to keep the information on this page timely and accurate but makes no promise or guarantee about the timeliness, accuracy, or completeness of the contents of this page. This is general information and is not intended to be tax advice. You are encouraged to also review the underlying state resources and publications.