gcm
Level 2

I moved from MA to Florida. On the MA return I entered money earned in MA under "Income adjustments" but my MA income still shows entire amount from fed. How to fix?.

I entered the proportional amounts on the "Income Adjustments" screen which shows the fed amounts and gives boxes for "Income while resident" and "Income while nonresident" for each category of income.
ColeenD3
Expert Alumni

State tax filing

Did you indicate that you were a part year resident of each state at the beginning of the program in Personal Info?

 

The return should adjust your income for the number of days in MA.

 

What Adjustments Must I Make as a Part-Year Resident?

 

Part-year residents must adjust income, deductions and exemptions when completing Form1-NR/PY. In general, these items are reduced because all of your income may not be subject to Massachusetts tax. Your deductions and exemptions are based on the number of days you were a Massachusetts resident or the amount of income that is subject to Massachusetts tax.

 

 Part-Year Resident Proration Formula

 

Part-year residents must fill out the proration formula in lines 2 and 3. Enter the dates you were a Massachusetts resident in the spaces provided. Then, enter the total days you were a Massachusetts resident and divide this number by 365 and carry this division out to four decimal places. Failure to do so may delay the processing of your return. This figure is used to determine the portion of certain deductions, exemptions, and the earned income credit a part-year resident may be eligible to claim.

 

Your entire income is not taxable to MA if you were a part year resident. For more informatipn, please see this link.

 

MA Part Year

gcm
Level 2

State tax filing

Yes, I did fill out the dates of residency. But for the income from mutual funds TurboTax can't apportion it out because it does not know the dates of each, for instance, dividend payment. So there is a screen where you are supposed to apportion that category yourself, which is what TurboTax is then ignoring. Maybe I should just delete the MA return and start over.

 

It matters because I was not a resident of MA in December when a substantial amount of distributions were made. So even though I was a 66% MA (jan - aug) and 33% FL resident in 2019, I don't owe MA tax on 66% of my income for 2019.

 

Thank you for the link to the MA rules. I guess another option would be to file electronically directly with MA.

gcm
Level 2

State tax filing

Posting for anyone with the same problem. I had to delete the entire MA form in TurboTax and re-add it. When I entered all of my information again, this time I was able to apportion the income correctly to the 2 states and TurboTax correctly only entered MA income on the MA tax form.