Skip to main content
April 18, 2023
Question

State taxes paid in 2 states

  • April 18, 2023
  • 1 reply
  • 0 views

Hi,

 

CO resident seeing clients in CO and Oregon. Oregon tax owed is $522 more than the state tax credit given from CO for paying state taxes to another state. Should the amount paid to OR be equal to the credit given in CO? Or, is it normal for CO not to give 100% credit to taxes paid to another state?

 

Thank you!

    1 reply

    April 18, 2023

    If you have a W-2 showing State Tax paid in two states, prepare your Non-Resident State first.  Report only your Oregon income, and Tax Paid as shown on your W-2.

     

    If Oregon tax owed on Oregon income is more than the Oregon Tax you already paid, enter the total amount of Oregon Tax Due in your Colorado Resident return as 'Tax Paid to Another State'.  Colorado should give you credit for the total amount of Oregon Tax Paid (or due). 

     

    Here's more info on How to File a Non-Resident State Return.

     

    @jfjffjfj 

     

     

     

     

    jfjffjfjAuthor
    April 18, 2023

    Hmm.  That is what I did. However, it looks like TT then did its own calculation and is giving me a tax credit below the amount paid to OR.

    AmyC
    April 18, 2023

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

    • 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.

    Check your form for the credit. You may need to enter additional information.

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