Av74O0OhzB
Returning Member

State allocation of income

Hi, everyone.

 

I rented a truck when I moved from State A to State B. The company I rented from had a trailer that needed to be transferred to one of its facilities in State B, so they asked if I would tow it in exchange for a credit toward the cost of my rental. I agreed and received the credit in the form of a partial refund. In other words, I paid in full for my rental before leaving State A and then received a partial refund after I delivered the trailer to its destination in State B. I think I should report the amount of the credit as "other income" on my tax returns. For purposes of my state returns, to which state should I allocate it? Because the facility where I picked up the trailer and the facility where I dropped it off are owned by the same company, it isn't clear to me which state was the "source" of the income.

 

Thank you for your help!