Capital Gains

Yes, changes are coming.  As the states become ready to receive returns by finalizing their systems TurboTax will be updated accordingly. Keep checking back in your return.

State Returns -  Prepare the nonresident state first.

1. Report the sale in the state where the property resides.
2. Report it on your resident state and receive credit for taxes paid to another state.

Credit for taxes paid to another state is allowed by a resident state when the same income is being taxed to another state.  Your resident state does not want you to pay tax twice on the same income. The credit that is allowed will be the lesser of:

1. the tax liability actually charged by the nonresident state, OR
2. the tax liability that would have been charged by your resident state