Question

Other state tax credit in WI state return

Forum|Forum|1 year ago
March 1, 2025
1 reply
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Moved from OR to WI in the middle of last year and I have some RSU income in the second half of the year which is reported for both WI and OR in W2. I should be getting a refund from WI for the double taxed income. I filled the OR part-year resident first in TurboTax and then WI but when I enter Credit for Taxes Paid to Another State, it asks me to fill the whole Schedule-OS manually. Will TurboTax not calculate it automatically?

TurboTax Premier Online

D

DianeW777

Not always. In this situation it should be your wages only so you don't need to be concerned about completing the entire schedule unless there is other income that would be double taxed and credit necessary. The actual credit that you would be entitled to is explained below.

State Returns - Assumes both states require income tax returns to be filed:

Report the income on each state return that is from the nonresident state
Report it on your resident state and receive credit for taxes paid to another state.

Credit for taxes paid to another state is allowed by a resident state when the same income is being taxed to another state. Your resident state does not want you to pay tax twice on the same income. The credit that is allowed will be the lesser of:

the tax liability actually charged by the nonresident state, OR
the tax liability that would have been charged by your resident state

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S

shachiagarwallaAuthor

So I do need to fill this form manually?

I didn't have to do it for CA/OR credit. TurboTax just asked me for the income that was double taxed and filled the form itself.

M

mglauner

If you received the RSU income in the second half of the year (reported on a W-2), TurboTax will split W-2 income/tax paid as reported on your W-2 for each state. You shouldn't need to make any other entries, unless you think your W-2 is incorrect.

It sounds like your employer correctly split your income between the two states, and showed the tax paid to each state, so there is no double-taxed income.

Not sure what you mean by 'CA/OR Credit'. If you received California income, but did not reside there, file a Non-Resident State Return, reporting only CA Income/Tax Paid.

Here's more info on How to File a Part-Year Resident Return and Allocating Income for a Part-Year Resident.

@shachiagarwalla