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January 13, 2024
Question

Do I include taxes owed among total income tax paid to my non-resident state?

  • January 13, 2024
  • 2 replies
  • 0 views

I live in one state and work in another. My resident state offers a credit for taxes paid to my non-resident state. My employer withheld taxes for my non-resident state, but apparently not enough, as Turbo Tax is showing that I owe more. When I view the Taxes Paid to Non-Resident State section of my resident state taxes, I can see the Total Income Tax amount is the amount my employer withheld. Should I amend this, using the "Amount If Different" box, to include the additional amount I will owe for the year?

    2 replies

    Employee
    January 13, 2024

    Make sure you prepare your NON-resident state return first----BEFORE you prepare the return for the state you live in.  And.....remember that many of the state forms and programs are not fully ready at this time.  You might need to wait awhile and come back to work on the states in a few weeks.

    **Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
    January 14, 2024

    Thank you for this. I did finish the non-resident one first, but I didn’t consider that the state forms may not yet be complete, so that might be my issue. Sounds like it might be best if I wipe out my resident one and start over with it once the non-resident forms are final?

    Hal_Al
    Employee
    January 14, 2024

    Q. Do I include taxes owed among total income tax paid to my non-resident state?

    A. Yes.  The credit is based on the total tax paid FOR the year, to the non-resident state, not paid during the year. TurboTax will do that automatically, if you follow @xmasbaby0 's instructions.