Multiple state returns. Which one do I process first in proseries? Resident state or non resident state?

Forum|Forum|3 years ago
February 20, 2023
2 replies
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Client lives and works in CA. He sold rental property in VA. If I process CA first all the income is taxed and VA non resident shows a credit for the tax paid in CA. Is this correct? If so VA does not receive any tax on the sale? If I process VA first CA taxes the sale and does not process a credit for the double taxed income.

It's been years since I have had one of these and I am a bit rusty on what is processed first

ProSeries Professional

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Best answer by BobKamman

Thanks for the responses. It just seems VA should receive the tax from the sale not CA but it shows a credit for tax paid to CA on the VA. So VA gets nothing. 🙄

VA gets all the taxes from the nonresident Californians. Probably comes out to be more than they give up.

Just-Lisa-Now-

Intuit Community Champion

I do the nonresident one first, that way taxes will carry to the resident return for taxes paid to another state, but I think if you jump back and forth between the 2 a few times, it should eventually pull it over.

Oh if theyre a reverse credit state, then doing the resident return first, might make more sense.

I know CA/OR and CA/AZ are reverse credit states, maybe they are with VA too.

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