reporting partnership income in multi-state returns

[anton]

I am in a husband-wife partnership (form 1065) and last year we moved from MA to AZ. We filed the partnership taxes for federal and state (MA and AZ) and now we started filing the personal taxes. When working on the MA personal tax returns, TurboTax imports all the partnership income into the MA state forms. It does not import just the MA portion. I cannot find any field or entry where I can enter just the MA portion of the partnership income. Did I miss something in the federal return or is there some other detail that I missed in the MA forms?

[Vanessa A]

All of the income gets entered.  Then as you walk through the you will see a part that says about adjustments to MA income. Here you will deduct out any income that was AZ income while a resident of AZ. This will allow just your MA income to be taxed by MA. 

[anton]

Thank you very much!

[anton]

I went through the MA interview again and I did not find any adjustments to MA income section. What I found was a section (under Partnerships and S Corps) that asked me about  the differences between the federal and MA partnership returns and I added the AZ numbers there but they were ignored (at the end of the MA interview it still showed the full partnership income attributed to MA). I also found a second section later in the interview that asked about "Differences between Federal and Massachusetts" but any number that I enter here increases the taxes owed. 

I looked at the forms and noticed that schedule E has the same numbers as the federal return and there is no option to adjust them for MA. I am a bit at a loss now, I went through the MA interview several times and I also looked at the forms and there doesn't seem to be a way to enter the MA portion of the partnership income. I would appreciate any help with this.

[RobertB4444]

Different states have different rules for how they tax residents and non-residents.  Massachusetts takes all income into account - whether it was earned in Massachusetts or not.  Then it takes the percentage of income earned in Massachusetts they and figures the taxes that way.

Look at your form 1-NR/PY when you come to the end of tax preparation and you will be able to see your ratio on lines 13 and 14.

@anton