Solved

I live in California and have rental income from rental property in Arizona. California it seems does not allow tax credit for tax paid to Arizona. Is this correct?

Forum|Forum|7 years ago
June 5, 2019
1 reply
0 views

No text available

TurboTax Premier Online

Best answer by DanielV01

It is correct. California and Arizona are reverse credit states. In this case, California taxes all of your income, and then you claim a credit on the Arizona return for taxes paid to California on the rental income. You will still file both states, but you will prepare the California return first, and then the Arizona return. You will have a screen that will allow you to claim the credit for California taxes on your Arizona return.

DanielV01Answer

Employee

It is correct. California and Arizona are reverse credit states. In this case, California taxes all of your income, and then you claim a credit on the Arizona return for taxes paid to California on the rental income. You will still file both states, but you will prepare the California return first, and then the Arizona return. You will have a screen that will allow you to claim the credit for California taxes on your Arizona return.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

S

sukarnaAuthor

Thank you! Any idea how I can check in Turbo Tax the amount of tax CA charged for this rental income after completing the CA return and before going through AZ return?