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 Out-of-State Tax Credit
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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