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Q: Credit for Income Tax Paid To Another State ( No Answer,   2 Comments )
Question  
Subject: Credit for Income Tax Paid To Another State
Category: Business and Money
Asked by: mac_ca-ga
List Price: $5.00
Posted: 07 Mar 2005 20:07 PST
Expires: 01 Apr 2005 19:10 PST
Question ID: 486527
How do i get credit for Income Tax Paid To Another State?
I have two W2 for the Year 2004 - From California and Iowa, But i was
full year resident of California in 2004.
How and where do i need to include it in Income tax returns?
Answer  
There is no answer at this time.

Comments  
Subject: Re: Credit for Income Tax Paid To Another State
From: jack_of_few_trades-ga on 08 Mar 2005 05:11 PST
 
I am a part year resident in 2 states this year and paid taxes into
both states, but I only owe taxes in 1.  The policy in Virginia is to
file a Virginia tax return (dispite not owing taxes) showing that my
income was low enough in the state to not owe taxes and they will
refund all my money.

I'm not certain, but I'd guess you'll have to do the same.  File an
Iowa tax return showing $0 income and your taxes paid into Iowa and
they will refund all the money.
Subject: Re: Credit for Income Tax Paid To Another State
From: 94nole-ga on 09 Mar 2005 06:22 PST
 
Couldn't add an answer for some reason, but will answer here.

If you are a resident of CA, you should file a non-resident return in
Iowa reporting only your Iowa income.

As a CA resident, file a CA return reporting ALL of your income
INCLUDING IOWA income and incllude as part of your CA return, the CA
credit for taxes paid to another state.  Therefore you will not be
taxed twice on the same income.

If you were part-year, meaning you moved during the year, then file
two part-year returns, one for each state, reporting the respective
state's income to the appropriate state.

Hope this helps
94Nole
www.FLMortgageMoney.com

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