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

[tctxldy]

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

[Just-Lisa-Now-]

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.

[sjrcpa]

CA and VA are bassackward, too.

[sjrcpa]

" 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? "

The tax result sounds correct. 

I don't use ProSeries so listen to Lisa about the processing order.

[tctxldy]

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.  🙄

[BobKamman · Accepted solution]

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

[Just-Lisa-Now-]

They live and work in CA.   VA is the nonresident state, since theyre a reverse credit state with CA, VA gives the credit for taxes paid to CA.

[tctxldy]

Thank you do much for the help.  Of course I tried to apply logic into the equation 🤣

[matte]

Client sold property in CO but lives in AZ. 1. Which form? 2. Is there reciprocity so that client is not double taxed?