Which order should I do my taxes?

Question

I had a complicated tax situation for the last 2 years, but this year my tax situation is quite simple. I have one W2 and 2 1099-INT forms. Thats it. I dont want to spend a fortune on a CPA.

I want to use TurboTax this year. I do have two states to file, and federal. I am going to itemize deductions due to my state taxes owed are huge.

Do I need to do my non resident state return first so I can claim the credit on my resident state return, or do I need to do my federal first?

Answer 1

You have to do the Federal return first. Most state returns start with the Federal AGI. Anything you send to the state now can't be claimed on your 2006 Federal return. State and local taxes are claimed the year PAID, not the year owed.

Answer 2

You generally do your federal return first, as many state tax returns start with federal adjusted gross income. You will then want to do your nonresident state return, so the nonresident state tax liability can be used on your resident state return for the state tax credit.

Answer 3

Yes do the non-resident return first. Then the resident state return.