alexa
Level 1
12-06-2019
05:44 PM
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California Sch S Other State Tax Computation Smart Worksheet Line A list $0 income tax liability paid. California resident client files GA nonresident return and has GA income tax liability. This GA income tax liability was satisfied by GA low income housing credit. Is the reason why Line A lists $0 because the GA liability was not paid to GA (used GA low income housing credit) or is this just an error in the system?
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IRonMaN
Level 15
12-06-2019
05:44 PM
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I don't do GA or CA, but if you didn't have any tax liability in the nonresident state, you aren't going to have a credit in the resident state.
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alexa
Level 1
12-06-2019
05:44 PM
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They did have a tax liability in GA but it was satisfied by tax credits not by an actual payment to the GA Dept. of Revenue.
IRonMaN
Level 15
12-06-2019
05:44 PM
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But the credit reduced the liability to zero, so you didn't have any GA tax.
Slava Ukraini!
Slava Ukraini!
alexa
Level 1
12-06-2019
05:44 PM
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The client has actually bought GA low income housing credit and that satisfied the GA tax liabilty
alexa
Level 1
12-06-2019
05:44 PM
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Ok. so you are saying that the GA tax liability after the credit is $0 therefore the client would not get a CA tax credit because they paid $0 GA taxes.
IRonMaN
Level 15
12-06-2019
05:44 PM
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Yup.
Slava Ukraini!
Slava Ukraini!
