District of Columbia Out-of-State Tax Credit

Article ID: 58925  

Question
District of Columbia Out-of-State Tax Credit

Answer

Out of State tax credit. The amount DC domiciliary taxpayers may claim as a credit for individual income tax paid to other state(s) if the income taxed by that state is derived from that state and that income is of a kind taxed by DC. The tax paid to a state is the total state tax liability shown on the state tax return. (It is not the state withholding shown on your Form W-2.) The credit is limited to the rate of tax charged in the District. If you are a statutory resident, the state in which you are domiciled gives you a credit for the taxes paid to DC.

Complete Calculation K to determine your out of state credit.  Enter the credit amount on Schedule U, Part 1a, Line 2.  If you paid tax to more than one state, enter the respective amounts and other state codes in the spaces provided.

No DC credit is allowed for any other tax imposed by a state, including the following:

• Corporate franchise tax;

• License tax;

• Excise tax;

• Unincorporated business franchise tax; and

• Occupation tax


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Views: 2604 Created on: Jun 15, 2013