My husband and I file federal tax as married filing jointly, and therefore TurboTax gets the information from both of us.
Since my husband lives and works abroad (China) for the whole last year, and does not need to pay PA tax, therefore for state returns, we use married filing separately. I need to pay PA tax, but my husband doesn't.
Below is how TurboTax splits our income based on our federal information:
1. We have joint accounts with Fidelity. TurboTax automatically splits half/half for any gain/loss from those accounts. I think that makes sense.
2. My husband and I both have individual accounts for dividends, and TurboTax automatically assigns the dividends based on who owns the accounts. That makes sense too.
3. My husband owns a foreign account which has capital gains. What I don't understand is why TurboTax automatically splits his foreign capital gains half/half with me in my PA state return. I am paying PA tax on half of his capital gains.
Hope I clarified your questions. Thanks!
