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Where to enter credit on CA return for tax paid to another state

csanchez
Level 4

CA resident sold 2nd home in AZ, Recorded the capital gain on 8949. Then calculated AZ tax just for that gain. Now on CA return. Where do I enter credit for tax paid to another state?

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5 Comments 5
csanchez
Level 4

I just discovered a check box on CA Capital Gains/Losses that excluded the transaction from CA Sch D. I would think that resolves the issue, right?

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Just-Lisa-Now-
Level 15
Level 15

AZ is a reverse credit state, so the non resident state will give credit for taxes paid to the resident state.  Look on the AZ return for credit for taxes paid to CA.


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csanchez
Level 4

I did see that. Thank you.

sjrcpa
Level 15

No. Don't do that. CA taxes everything a resident earns.


Ex-AllStar
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csanchez
Level 4

So let CA calculate the tax and take the credit on AZ?

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