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March 12, 2025
Question

I had a W2 for CA and MA. CA is Nonresident. Why is my MA allowable credit less than the actual tax paid in CA? Shouldn't up to 5% be allowed?

  • March 12, 2025
  • 1 reply
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CA income was $7750. Tax paid on that (after adjustments) is showing as $437. But in MA allowable credit is only $366. Should I be able to get credit for up to 5% of the $7550 at a minimum? ($388 in this case instead of $366.

    1 reply

    March 12, 2025

    The total credit is the smaller of the amount of taxes due to other jurisdictions (net of certain adjustments) or the portion of your Massachusetts tax due on your gross income that is taxed in any other such jurisdiction. Massachusetts allows a credit on the amount of the Massachusetts tax multiplied by the gross income taxable in the other state divided by the total gross income for Massachusetts.