What is double-taxed income in "Summary of Taxes Paid to Other States"?

Forum|Forum|2 years ago
April 14, 2024
1 reply
0 views

The credit is automatically calculated, but I was wondering if it's possible that Turbo Tax miscalculated the "Double-taxed income" amount after completing the nonresident return?

The "Tax Paid" amount it transferred over was correct, however the Double-taxed Income amount it transferred over seems odd, and I wonder if I need to correct it.

It's an amount that's not "Total 5% income" nor "Taxable 5% income" from the Summary of Taxes (MA non-resident, I am NJ full-year resident).

Instead. when I preview the PDF of my taxes, I see that that the amount Turbo Tax automatically calculated as Double-taxed Income is from Line 3 from 2023 Schedule NTS-L-NRPY, which was Total 5.0% Income minus an Adjustment to income (which was Line 10 of 2023 Schedule Y ---> Student Loan Interest).

I was under the impression that Double-taxed income was supposed to be the "Taxable 5% income" amount?

AmyC

Employee

Since each state has their own rules, the income from the nonresident state is often adjusted for the resident state rules.

Each state calculates taxable income differently.
Each state has its own tax rate/ system.
You get the lowest of both categories as a tax credit.

You get credit for the lower state tax on the lowest taxable amount.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

kb115_Author

I guess my question is, did Turbo Tax make a mistake when it auto calculated my double-taxed income ... and should I edit it?

When I go through Tax Tools and view the Tax Summary of my MA return, I see info for

Total 5% Income (which is just MA wages),
Total 5% Deductions,
Total 5% Exemptions,
Taxable 5% Income .... which is from deducting both the aforementioned Deductions and Exemptions from Income

I know how Total 5% Exemptions was calculated. And I know how Total 5% Deductions was calculated.

Total 5% Deductions consisted of:

"Retirement Payments" (in my case, withheld Social Security Tax and Medicare Tax )
Student Loan Interest
Undergraduate Student Loan Interest

The double-tax income Turbo Tax calculated was simply MA Wages - Student Loan Interest (just Student Loan Interest, not Undergraduate Student Loan Interest)

I can see on my Form 1-NR-PY through lines 12-25 :