I have a client that is an S corp shareholder in a large law firm. They have pass through income from various states with taxes paid on their behalf by the corporation. I can not get the credit for Virginia or Oregon on Schedule S. I should not have to file non-resident returns in those states to get the credit since this is from a flow through entity. Any one have any suggestions?
OR is a reverse credit state, VA may very well be also (you'll have to research it), meaning the other state credit goes on the non resident state, not the resident state return.
Correct. Except, according to the instructions for Schedule S, if a California resident is included in a group nonresident return to these states, they can claim the credit on their CA resident return (see page 1 of instructions).
