Schedule OSC: Credit for Tax Paid to Another State (2024)
Virginia · Virginia Tax · Used for tax years 2024
Virginia Schedule OSC calculates the credit for tax paid to another state. It reports qualifying taxable income, qualifying tax liability owed to the other state, Virginia taxable income and income tax, and the total credit.
Who files this form
Schedule OSC is used to claim a Virginia credit for tax paid to another state. The form provides credit calculations for taxpayers filing Form 760, Form 760PY, or Form 763.
You must identify whether you, your spouse, or both of you are claiming the credit. The supplied form does not explain the full eligibility rules.
What you'll need
- A copy of the tax return from each state for which you claim a credit. You must enclose these copies.
- Your name as shown on your Virginia return and your Social Security number.
- Your Virginia taxable income and Virginia income tax amounts.
- The other state's filing status, qualifying taxable income, and qualifying tax liability.
The form refers to instructions for several of these amounts, but those instructions were not supplied.
How to file
Complete a separate credit computation for each credit claimed. Schedule OSC has space for two credits. If you claim more than two, use additional Schedules OSC.
Identify each state and enclose a copy of its tax return. Enter the total credit on Schedule OSC, Line 21, and on Line 24 of your Virginia Form 760, Form 760PY, or Form 763.
The supplied form does not give a mailing address or e-file directions.
Common mistakes
- Leaving out another state's return. You must enclose a copy from each state for which you claim credit.
- Using only one Schedule OSC for more than two credits. The form directs you to use additional schedules.
- Entering the income percentage incorrectly. Lines 8 and 18 require one decimal place and a percentage no greater than 100%. For example, 0.3163 becomes 31.6%.
- Missing the border-state indicator. Fill in the oval if claiming a border-state credit. The form also directs you to see the instructions for the border-state income percentage.
Questions people ask
Which filing status do I enter?
Enter the status claimed on the other state's tax return: 1 for Single, 2 for Married Filing Jointly, 3 for Married Filing Separately, 4 for Unified, or 5 for Other.
Can I identify both myself and my spouse as claiming the credit?
Yes. The person-claiming-the-credit field uses 1 for You, 2 for Spouse, or 3 for You and Spouse. This field does not explain eligibility requirements.
Does the calculation differ by Virginia return type?
Yes. For the first credit, Form 760 and Form 760PY filers divide Line 3 by Line 4, multiply Line 7 by that percentage, and claim the lesser of Line 5 or Line 9. Form 763 filers divide Line 4 by Line 3, multiply Line 5 by that percentage, and claim the lesser of Line 7 or Line 9. The income percentage must be shown to one decimal place and cannot exceed 100%. If claiming a border state, the form says to see the instructions.
Where do I report the total credit?
Enter the total of Lines 10 and 20 on Schedule OSC, Line 21. Also enter it on Line 24 of Form 760, Form 760PY, or Form 763.