DC taxpayers may claim credit for income tax paid to a state if the income taxed by that state is derived from and 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 withholding amount shown on your W-2.)
No credit is allowed for any other tax imposed by a state, including the following:
- Corporation franchise tax
- License tax
- Excise tax
- Unincorporated business franchise tax
- Occupation Tax
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