CA Sched S

[Hahn1040]

Do any of you CA people have experience with taking the credit for state tax paid to VA?

MY client is a dual resident.  She works in VA, owns a home and spends more than 183 in VA.  However, she still has close ties to CA:  owns a home, files jointly with husband who lives in CA and receives a CA pension.  She has spent well over 45 days there in the past two years so she does not qualify for the Safe Harbor.

Both states tax all of her income because she is a resident of both states.

VA instructions say that she takes the credit on the CA return for the tax on her income.  CA instructions say that she can only take the credit for VA source income.  therefore the pension is taxed to both states with no credit relief.

Am i interpreting this correctly?  Is there any way around it.

I  would appreciate any guidance anyone can offer.  Thanks!

[Lion EA]

If she's truly a resident of both states, there might not be "any way around it." I run into that with NY and CT from time to time. Follow the money AND follow the timeline.