2016 Schedule S Other State Tax Credit. 2016 Schedule S Other State Tax Credit-2025

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Credit is allowed for net income taxes paid to another state (not including any tax comparable to Californias alternative minimum tax) on income that is also subject to California tax. The credit is applied against California net tax, less other credits.
The foreign tax credit limitation is calculated as a taxpayers precredit U.S. tax liability multiplied by a ratio (not to exceed one), where the numerator is the taxpayers foreign-source taxable income, and the denominator is the taxpayers worldwide taxable income for the year.
Put simply, state tax reciprocity means you can live in one state and work in another without being taxed in your work state. Instead, you only pay taxes to the state you live in. If no relevant state tax reciprocity agreement exists between your residence state and work state, you may need to file taxes in both.
If you are an individual filing a California personal income tax return or an estate or trust filing a California fiduciary income tax return, use Schedule S to claim a credit against California tax for net income taxes imposed by and paid to another state or U.S. possession.
There are generally two ways reciprocal agreements work: Income not taxed at source: both states tax the income, but the state of residence offers the credit. Reverse credit states: both states tax the income, but the nonresident state offers the credit.
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When more than one state taxes the same income, you can claim a credit for taxes paid to the other state. The other state is usually the nonresident state. When you create a Resident state return and a Non-Resident state return, the program will calculate the credit for taxes paid to another state, if applicable.

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