Is there a cap on credit received for paying taxes in another state?

Marinanners
Marinanners Member Posts: 2 Newcomer
in State Filing

I live in VA and work in NC. It says my tax liability was $684 but I paid $830. I put that information in and I only get credited for the $684 for the border state method. Why wouldn't I be credited for the $830 I paid? It causes me to owe $176 in VA taxes.

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  • RustyL
    RustyL FreeTaxUSA Agent Posts: 29
    Answer ✓

    Hi Marinaanners,

    Because the remainder of the $830 that was withheld will be refunded to you by the state you work in (NC), your resident state (VA) won't cover that amount with the credit. Just make sure to file your NC return to claim the refund of excess taxes withheld.

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