Hello,
For my 2024 PA State taxes, I will file as a part-year resident as I was in the state the first 10 months of the year and I was overseas the last 2 months (new domicile). I only have interest income in 2024 (no earned income) and it is made of $67 regular interest (taxable by my state) and $5634 US government interest/bonds (not taxable by my state). Total of $5701 interest income for 2024.
Here is my problem. Looking at my brokerage account statements, during the last 2 months of 2024 when I was not resident of my state, the only income I received was $1 of regular interest income (out of the $67 total regular interest income for 2024. No US governement interest was received during the 2 months not PA resident.
For State taxes, I am trying to deduct this $1 from my $67 interest income (Regular Interest in Turbotax). Turbotax does not let me choose from what kind of interest income I can deduct this $1 (regular interest or US governement interest). Here is a screenshot of the page:
When I chose Yes, the following page is:
Problem, if I enter $1 in the Adjustment amount, it deducts it from the US Governement interest amount and not from the Regular Interest (which is what the $1 dollar corresponds to).
Therefore at the end, my taxable state income is still $67 and not $66 (which is what it should be after the $1 deduction). On the other hand, my US government Interest becomes $5633 instead of $5634 (the $1 deduction was applied). It should be the other way around.
- Is there something I am doing wrong? I know $1 won't change my state taxes but I would like to do things right. How can I fix that?
- Also, what type of Adjustment should I select in the list provided on the right hand size (see screenshot above)?
Thank you for your help!
