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Screen VASTCr - Virginia Credit for Taxes Paid to Other States (1040)
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Overview
Use this screen to calculate the credit for taxes paid to other states on Schedule OSC and portions of Schedule CR. For returns that are prepared within UltraTax CS, this screen will be populated with the amounts as calculated. In the event there are other state returns prepared outside of UltraTax CS, add 1 unit of the screen for each other state or foreign country for which a credit may be calculated.
General Information
Use this section to enter information to complete Schedule OSC. If processing a multiple-state return, complete the nonresident states first, followed by the resident state. UltraTax CS transfers the information required to calculate the credit from the nonresident returns to the resident return. Use a separate unit of the screen for each other state or foreign country.
note
Virginia has reciprocal agreements with Arizona, California, Washington DC, and Oregon that require the credit for taxes paid to another state be taken on the nonresident return. When Virginia is attached as a nonresident state and any of those states are attached as a resident return, the information transfers to the nonresident Virginia return.
When the other state return is prepared outside of UltraTax CS, enter the information from the other state return in the
Force
column. Then, attach a copy of the other state return using the Electronic Filing Attachment Utility and select the Other State Credit - copy of return
option.Attachments are restricted by Virginia to one per state. Therefore, when there are two or more other returns for a single state, they need to be combined into a single document before being attached, otherwise Virginia will reject the return.
For example, when there are 3 composite returns for Michigan, attach 1 document as
Other state credit - composite filing statement for Michigan
and it should contain all 3 composite returns in a single PDF.If there are multiple other state returns, each state needs to be attached separately.
UltraTax will automatically attach the other state returns if prepared within the same client file. All attachments are listed on the PDF Attachment Report, which can be viewed in the Forms view. Only manually attach state returns that aren't included with the client in UltraTax.
Taxable income sources
If data is entered in any
Taxable income sources: Force
field, all Taxable income sources: Force
fields need to be used. UltraTax CS uses the lesser of the taxable income entered in the calculated State taxable income
field or the total of all taxable income sources entered for Virginia Schedule OSC/CG, line 3.State taxable income
An entry in the
State taxable income: Force
field overrides all other data entry in the taxable income sources or calculated fields for use on Virginia Schedule OSC/CG, line 3.Tax owed to other state
If you are using UltraTax CS to file a nonresident return, UltraTax/1040-VA automatically completes the
Tax owed to other state
field for the resident state return. For nonresident Virginia returns, UltraTax/1040-VA automatically completes the Tax owed to other state
field when Arizona, California, District of Columbia, or Oregon resident returns are attached.Use the
Force
column to enter the Tax owed to other state
field amount if it is different from the calculated amount. If you are filing a part-year resident return or are not using UltraTax CS to file a nonresident return, for which you would like to claim this credit, enter the tax from that state's return in the Force column.Income tax paid by an entity
UltraTax CS calculates
Income tax paid by an entity
on the VASTCr screen for the following states: AZ, CA, MO, MS, and UT. These states treat the pass-through entity tax as a nonrefundable credit; when credits are nonrefundable they are not included in the calculated Tax owed to other state amount
field.For all other nonresident states with the pass-through entity tax credit, the
Tax owed to other state
calculated amount includes the pass-through entity tax credit.Use the
Force
column to enter the Income tax paid by an entity
amount if it is different from the calculated amount, or for returns not prepared in UltraTax CS. For returns not prepared in UltraTax CS, be sure to include a copy of the return when claiming the other state credit.note
The
Income tax paid by an entity
and Tax paid to other state
amounts are combined and reported as 1 amount on Qualifying Tax Liability - other state on Schedule OSC.Virginia taxable income
If you filed separately in the other state but are filing jointly in Virginia, enter only the Virginia taxable income attributable to the filer whose income was taxed by the other state.
Indicate special computation (KY, MD, NC, or WV)
If you are filing a return for a taxpayer and/or spouse who meet the special calculation qualifications as described in this field, enter
X
. The requirements for the special calculation are as follows:- The only income is from wages earned in Kentucky, Maryland, North Carolina, or West Virginia.
- The taxpayer and/or spouse are required to file an individual tax return in only one of these states.
- The Virginia taxable income is equal to or greater than the taxable income on the return filed with the other state.
If you enter
X
in this field, UltraTax CS prints X in the Claiming border state field on Schedule OSC. If this field is not marked, UltraTax CS assumes that the taxpayers don’t meet the requirements for the special calculation and automatically calculates the credit based on the percentage of the other state's taxable income.Other state taxes paid on a group nonresident return
Credit for taxes paid to another state is usually taken on the nonresident return when the credit is between California, Arizona, Oregon, and Virginia. Taxpayers who were included on a Nonresident Group or Composite return are allowed to take the credit on the Virginia resident return. Enter
X
and enter the information in the Force
fields to calculate the credit on a Virginia Resident return.Credit for Foreign Source Retirement Income Tax
Complete this section to calculate a Virginia credit on foreign source retirement income tax.
Foreign country code and name
Enter the name of the country where tax is being paid with respect to retirement incomes.
Taxes paid to foreign country/Qualifying taxable income
Enter the amount of taxes paid and qualifying income in U.S. dollars.
Statement showing foreign currency computation
UltraTax CS prints the information entered in this statement window as a submittable statement. Select the
Show foreign columns
icon inside the statement window to display the foreign currency column for data entry.