Question

taxation in non-resident state

Forum|Forum|3 years ago
February 21, 2023
1 reply
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Live in Virginia in grad school Summer internship in Cali summer 2022, it was the only earned income I had. I am encountering an error message on Form OSC/GC to the effect that "State code is not a valid state for this credit". (I had entered CA - California). Does this mean that Virginia will tax me for this income I earned while a nonresident in California, even though it's already been taxed by Cali?

HopeS

You file a non-resident return for California to report the income earned from your internship and a resident state return for Virginia.

In your situation, you will file a Federal return, a Virginia return, and a California Non-Resident return. Your California non-resident return will report only the income earned in California. The Virginia return will report ALL income, but provide an allowance for any tax paid to the state of California. (You will not be taxed on the same income twice.)

Complete your non-resident state return (California) first. This will allow the credit to be calculated and applied to your Virginia return.

Review the link below for more information:

How to file part-year resident

@tresah01

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