Question

California residents are allowed a credit for net income taxes paid to another State on income also subject to the California income tax. However, the credit is not allowed for which of the following reasons?

Answer 1

The reason this credit is not allowed is because: A. If the other state allows California residents a credit for net income taxes paid to California

The types of tax.

In Economics, there are different types of tax and these include the following:

• Gift tax
• Excise tax
• Alcohol tax
• Income tax
• Estate tax
• Employment tax
• Net income tax

What is net income tax?

Net income tax can be defined as a type of tax which grants either deductions or exemptions from an employee's gross income. Additionally, a net income tax is a system of taxation which is designed and developed to assess taxes on the basis of gross income, gross dividends or gross receipts.

In conclusion, it is a fact that any form of deductions or exemptions that doesn't qualify for a credit is not considered as a net income tax in California and every other part of the world.

Read more on income taxes here: brainly.com/question/27008617

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Complete Question:

California residents are allowed a credit for net income taxes paid to another State on income also subject to the California income tax. However, the credit is not allowed for which of the following reasons?

A. If the other state allows California residents a credit for net income taxes paid to California

B. If the income taxed by the other state has a source within the other state under California law

C. If such states do not allow their residents a credit for net income taxes paid to California

D. The amount of the credit is greater than the same proportion of the total California tax as the income taxed by both states bears to the total income taxed by California