Resident Credit for Taxes paid to other state

[yellowhat]

Still evaluating ATX here, does anyone know if ATX knows how to calculate Resident Credit for taxes paid to other state if the clients have multi-states return? I tried it on the trial version, and it doesn't seem to know how to calculate on its own.

[Jack from Ohio]

Still evaluating ATX here, does anyone know if ATX knows how to calculate Resident Credit for taxes paid to other state if the clients have multi-states return? I tried it on the trial version, and it doesn't seem to know how to calculate on its own.

No.  None.

[mcb39]

In Wisconsin, we use Form OS.  Of course, you have data entry, but it takes the information that you input and carries it to the correct line on the Wisconsin Return form.  I have had as many as six other states on one return.

[OldJack]

_{The resident state return usually has a form for that which is an attachment to the resident state.}

[Margaret CPA in OH]

I think it may depend on how the states determine that credit. I do several with part-year Ohio. The Ohio returns calculates Ohio tax on all income, considers the amount earned out of state, then calculates the tax as a relative percentage of the total. I can't speak for all states as I don't know how all states determine the credit. Forms and credits differ.

[yellowhat]

I tried it as New York resident with New Jersey Income, however, the software doesn't seems to know how to calculate the Resident Credit on its own. So I guess ATX is a no for me. I have to continue testing other tax softwares.

[ILLMAS]

I think you manually have to enter the information to get the credit, it just doesn't compute on it's own, for example you will need to fill-in the wages/income and taxes paid per state.

[mcb39]

I tried it as New York resident with New Jersey Income, however, the software doesn't seems to know how to calculate the Resident Credit on its own. So I guess ATX is a no for me. I have to continue testing other tax softwares.

 

You also have to know and find which form to use and add it to the return.  No software is going to automatically know that taxes were paid to another state.  Some states withhold for the resident state.  Some tax it all as a resident and others split the withholding.  If I have a client with income from two or more states; I have to file part-year or non-resident forms for those other states to get the refund due.  After preparing the OS; I have to attach copies of all of the Other States to the return.  Software cannot do all that work for you.  There are two many variables, for one thing.

[Jack from Ohio]

Still evaluating ATX here, does anyone know if ATX knows how to calculate Resident Credit for taxes paid to other state if the clients have multi-states return? I tried it on the trial version, and it doesn't seem to know how to calculate on its own.

The question was if ATX flows taxes paid to another state to the resident state return.  That is the only question.

 

The answer to the OP is NO.  No more complex than that.

 

ATX state returns do NOT flow tax from a non-resident or part-year-resident state to the resident state for credit.  Never has, and I doubt it ever will.

[kcjenkins]

The question was if ATX flows taxes paid to another state to the resident state return.  That is the only question.

 

The answer to the OP is NO.  No more complex than that.

 

ATX state returns do NOT flow tax from a non-resident or part-year-resident state to the resident state for credit.  Never has, and I doubt it ever will.

There are two many variables because almost every state has different rules for how to calculate n/r returns.  Having the tax paid 'flow' might work for some states, but not for those that only allow 'some' other state taxes to be deducted.  If you really think you must have that flow, better be looking quite a bit higher in the price scale,  

[michaelmars]

You also have to know and find which form to use and add it to the return.  No software is going to automatically know that taxes were paid to another state.  Some states withhold for the resident state.  Some tax it all as a resident and others split the withholding.  If I have a client with income from two or more states; I have to file part-year or non-resident forms for those other states to get the refund due.  After preparing the OS; I have to attach copies of all of the Other States to the return.  Software cannot do all that work for you.  There are two many variables, for one thing.

lacerate, prosystem and pro series all do the state credit automatically.  With atx its not so bad doing it manually until you make a small change to one state and forget to change the home state.  If you only have an occasional return like this then you can get by with atx but if you do a lot of multistates then you need more comprehensive software.

[Lion EA]

Exactly.  If you do a lot of multistates, the time you save will mean you can do more returns, more accurate returns, in the same amount of time and make more money to pay for more expensive software and have the same or better profit.  Or get to sleep earlier!

 

When I was shopping, the cost increase from ProSeries to ProSystem fx (with a lot of pay-per-returns) was covered by only TWO tax returns.  It was a no-brainer to upgrade.  I think I did at least SEVEN more returns by 15 April that year.  And slept better.  (And continued to prepare returns with very easy multi-states well into the fall.)

[jklcpa]

lacerate, prosystem and pro series all do the state credit automatically.  With atx its not so bad doing it manually until you make a small change to one state and forget to change the home state.  If you only have an occasional return like this then you can get by with atx but if you do a lot of multistates then you need more comprehensive software.

 

 

^ exactly.  Drake software does it automatically too.

[HV Ken]

lacerate, prosystem and pro series all do the state credit automatically.  With atx its not so bad doing it manually until you make a small change to one state and forget to change the home state.  If you only have an occasional return like this then you can get by with atx but if you do a lot of multistates then you need more comprehensive software.

 

While I agree it would be nice to have this automated, I take advantage of the LINK feature in ATX to ensure any changes on a state return are automatically reflected on the home state return (thus not forgetting).  Since I don't have that many multi-state returns, I can deal with this inconvenience.

[Abby Normal]

You have to check the credit anyway, so I don't see the lack of 100% automation as much of a problem. It's always the last thing I do on a multistate return.

 

Edit: I've used software that supposedly automated it and found that I had to override the calculations a lot of the time, anyway.