The amount of tax that you report as being paid to the other state is NOT the amount that you had withheld by the other state. It is the amount of tax that is calculated on the other state return. Before entering this amount, you must first view the PDF of your other state's return to view the amount of tax. DO NOT just report the amount that you had withheld (from your W-2, for example).
To view your PDF, please click:
- View/Print Return
- Print your 2019 Tax Return - a PDF of your federal return followed by your state return(s) will open on the screen for you to view.
The amount that you receive as a credit should be based on the amount of tax that you actually pay to that other state.
If you had $1,000 withheld during the year, but then file the other state return and receive a $250 refund, the amount of tax you actually paid to the other state technically was only $750. On the other hand, if you had $1,000 withheld, and you file the other state return and end up owing an additional $150, the amount of tax that you paid to the state was $1,150.
Reporting the amount that you had withheld, from a W-2 for example, could result in a larger or smaller credit than you are actually entitled to.
To correctly figure your credit (if you are manually entering your credit for taxes paid to another state), you need to actually prepare and view your other state return to make sure you receive the correct amount.
Other Common questions about the credit for taxes paid to another state include:
When should I claim the credit?
Part Year Returns: Why should I not take the credit on a Part Year state return?
Nonresident Returns: Why should I not take the credit on a Nonresident state return?
When could I take the credit on a Part-Year or Nonresident state return?