Section 45IAC3.1-1-75. Nonresident credit from other states

   Credit Agreement States. Credit for taxes paid other states will not be allowed for taxes paid to states which allow Indiana residents a nonresident credit.

  Credit should instead be obtained from the state imposing the tax upon Indiana residents. These states include:

	Arizona	Maryland	West Virginia
	California	New Mexico	Washington D.C.

  All income received from these states is reported in the same manner as if it were received from Indiana. No credit may be taken on the Indiana tax return for any taxes withheld or otherwise paid to the other state. Instead, after filing the Indiana tax return, the taxpayer should file a nonresident tax return with the other state, taking credit for the Indiana tax. This nonresident return must be filed in accordance with the instructions received from the other state.

EXAMPLE: Taxpayer is Full-Year Indiana Resident
Income from Indiana. . . . . . . . . . . .		$6,000.00
Income from Arizona. . . . . . . . . . .		4,000.00
Total Income Exemptions. . . . . . . .		3,000.00
Total liability to Arizona. . . . . . . . .		120.00
Calculate Indiana tax and credits as follows:
Total income. . . . . . . . . . . . . . . . . .		$10,000.00
Less: Exemptions. . . . . . . . . . . . . .		3,000.00
	Taxable Income. . . . . . . . . . . . .	7,000.00
Indiana tax rate. . . . . . . . . . . . . . . .		.02
Indiana tax. . . . . . . . . . . . . . . . . . . .		140.00
Credit for tax paid to Arizona. . . . .		NONE

  Take credit on nonresident return filed with Arizona for tax paid to Indiana based on Arizona income. (Department of State Revenue; Reg 6-3-3-3(a)(020); filed Oct 15, 1979, 11:15 am: 2 IR 1536; errata, 2 IR 1743)