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Thanks DMarkM1 again for your explanation! Just to make sure I got the math right for the allocation. Counting the number of pay dates is basically assuming each paycheck is the same amount, right? What if my first paycheck is larger and the paychecks after that is more or less the same amount (but not exactly, can fluctuate by a few bucks)?
Assuming I have a total of 10 paychecks from Job B. The first one is $3000, and other 9 is $1000 each. The first 3 paychecks are dated before my relocation, and the other 7 are dated after my relocation. My number of days before relocation is 50 and after relocation is 200. Then which is the correct way to allocate my income?
- Sum paychecks according to its date before/after relocation: State A = $3000 + $1000 + $1000 = $5000, State B = 7 x $1000 = $7000
- Prorate according to number of paychecks before/after relocation: State A = (3/10) x $12000 = $3600, State B = (7/10) x $12000 = $8400
- Prorate according to number of days before/after relocation: State A = (50/250) x $12000 = $2400, State B = (200/250) x $12000 = $9600
March 7, 2024
6:17 PM