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Category: California

Taken from California Instructions for Schedule S, Section C & H

Section C (certain states)

California resident individuals...that derived income from sources within any of the following states or US possessions and paid a net income tax to that state or US possession on income that is also taxed by California may claim the other state tax credit:

Alabama

Louisiana

New Mexico

Virginia

American Samoa

Maine

New York

(dual residents*)

Arkansas

Maryland

North Carolina

Virgin Islands

Colorado

Massachusetts

North Dakota

West Virginia

Connecticut

Michigan

Ohio

Wisconsin

Delaware

Minnesota

Oklahoma

District of Columbia

Georgia

Mississippi

Pennsylvania

(unincorporated

Hawaii

Missouri

Puerto Rico

business tax and

Idaho

Montana

Rhode Island

income tax, the

Illinois

Nebraska

South Carolina

latter for dual

Iowa

New Hampshire

Utah

residents only)

Kansas

(business profits tax)

Vermont

 

Kentucky

New Jersey

  

*A dual resident is any taxpayer who is defined as a California resident under California law and a Virginia resident under Virginia law. If you are a dual resident, you are allowed to claim the other state tax credit for taxes paid to Virginia on Virginia source income. Dual residents who are elected or appointed officials and staff as defined in R&TC Section 17014(b) may claim the other state tax redit for taxes paid to Virginia on all income taxed by Virginia whether or not it has a source in Virginia.

Section H (Source Income)

For this purpose, California's sourcing principles apply even though the results may be contrary to the other state's principles. The following describes the sources of various types of income:

  • Compensation for services rendered by employees or independent contractors has a source where the services are performed.
  • Income from tangible personal property and real estate has a source where the property is located.
  • Income from intangible personal property (such as interest and dividends) generally has a source where the owner resides.
  • Business income has a source where the business is conducted.