Question about CA Other State Tax Credit

Forum|Forum|2 years ago
February 17, 2024
1 reply
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I moved from NM to CA in 2023. After I moved to CA, the RSU income granted in NM was 100% reported to CA, and apportioned amount was reported to NM based on time spent in NM from the grant date to the vest date, so this "apportioned amount" was taxed by both NM and CA. Can I claim the tax credit on the CA state tax return? I tried to use turbo tax to claim the credit, but I am not sure if I am doing it correctly.

In the first window, I should type in the double taxed the income, right?

In the second window, for the "Income Tax Paid to NM", should I input all the tax paid to NM, or just the double taxed portion? The same question for the "AGI", should I put the entire income reported to NM or just the double taxed income?

Multiple States

AmyC

Employee

You want to enter the tax on the income you are claiming as double paid.

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eddy1611216Author

Thank you. but how to approve the number entered for the double taxed income is the correct one? The Turbo Tax asked me to attach a copy of my NM return, but the double taxed income is not clearly shown there. I mean the AGI in the NM state tax return includes both the double taxed income and the income earned when I was living in NM.

AmyC

Employee

CA knows that NM has a graduated tax rate and the income levels. Once you have marked the income taxable to both, CA understands tax schedules and can determine the correct amount of tax. They might question how you got that income number and you can reply with your RSU information.

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