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Level 1
posted Mar 24, 2023 12:40:55 PM

How do you allocate schedule c income between two states?

The program allocated all the income to one state.  It needs to be split between states.

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1 Replies
Expert Alumni
Mar 24, 2023 5:14:56 PM

TurboTax does not allocate the tax to one state, you must do the allocation- but note that your resident state taxes all of the income so you must file and allocate in the nonresident state(s), unless you were a Part-Year resident of each state you earned the business income in- in which case you would once again do the allocation in each state.