Question

Two State returns

Forum|Forum|6 years ago
March 10, 2020
1 reply
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I am a resident of Idaho and worked part of the year in Oregon. On my W2 my earnings in Oregon were $53,116, and my Idaho earnings were $35,884. I get a return from Oregon because the tax I paid them was higher than the tax required for the $53,116, then when I do the Idaho state, it shows my income at the total of the two states worked, therefore, taxing me on income I earned in Oregon and Idaho. I don't know how to make TurboTax recognize this. I could use some help. Thank You

J

JotikaT2

You will need to make sure you fill out the section to get a credit for taxes paid in another state on your resident Oregon return. This will ensure you are not taxed twice on the income earned in Idaho while you are an Oregon resident.

In order to claim a credit for taxes paid to another state, you will need to complete your nonresident tax return first.

Once you complete this, you will work on your resident return. While answering the questions in the state return, you will see a screen for Credits for Tax Paid to Another State. Select Edit to the right of Idaho.

Credit

The next screen will show your Idaho double-taxed and the tax paid to Idaho based upon your input in the Idaho return. If there are any differences, you would update the amounts here. Otherwise, hit continue to see what credit you are entitled to if any income is taxed in both states.

Income taxed twice