Schedule OSC: Credit for Tax Paid to Another State (2025)
Virginia · Virginia Tax · Used for tax years 2025
Virginia Schedule OSC computes the credit for tax paid to another state. It reports qualifying taxable income, tax liability owed to the other state, Virginia taxable income and income tax, and the total credit claimed on your Virginia return.
Who files this form
The 2025 Virginia Schedule OSC is used to claim a credit for tax paid to another state. It includes credit calculations for taxpayers filing Virginia Form 760, Form 760PY, or Form 763.
What you'll need
- A copy of the tax return from each state for which you are claiming a credit. You must enclose these copies.
- Your Virginia return, including your name as shown on that return, Social Security number, Virginia taxable income, and Virginia income tax.
- The other state's filing status, qualifying taxable income, and qualifying tax liability.
The form refers you to the instructions for details about Virginia taxable income, qualifying tax liability, and Virginia income tax. Those instructions are not included in the supplied text.
Common mistakes
- Forgetting to enclose a copy of each state's return for which you claim a credit. The form specifically requires these copies.
- Entering an income percentage above 100%. Lines 8 and 18 say to calculate the percentage to one decimal place and not exceed 100%.
- Claiming more than two credits without additional Schedules OSC. The form says to use additional schedules when claiming more than two credits.
Questions people ask
Can I claim more than two credits?
Yes. The form has space for two credit calculations. Use additional Schedules OSC if you are claiming more than two credits.
How do I identify who is claiming the credit?
On Line 2 or Line 12, enter 1 for you, 2 for your spouse, or 3 for you and your spouse.
How do I calculate the income percentage?
For Form 760 or Form 760PY, divide Line 3 by Line 4 for the first credit, or Line 13 by Line 14 for the second. For Form 763, reverse those divisions. Calculate the percentage to one decimal place, not exceeding 100%. The form gives the example that 0.3163 becomes 31.6%. If claiming a border state, the form directs you to the instructions.
Where do I enter the total credit?
Add Lines 10 and 20 and enter the total on Schedule OSC, Line 21. Also enter it on Line 24 of Form 760, Form 760PY, or Form 763.