Why didn't I get all the W-2 withholdings back from my nonresident state?

This can happen if your nonresident state has a higher tax rate than your resident state. Most resident states limit the Credit for Taxes Paid to Another State to the amount of tax they would charge for that same income.

The following are some other reasons you wouldn't receive a full refund:

• You had some income that was only taxed by your nonresident state.
• You paid local taxes and your resident state doesn't allow a credit for those taxes.
• You had a subtraction on your resident return that caused some of the income on your nonresident return to not be taxed by both states.
• You had use tax due to your nonresident state.