Thank you AmyC! I appreciate that you took the time to create a testcase to help resolve my problem.
I did try deleting form 140PY a few times, but continued to have the problem (of not being asked to allocate any portion of earned income to AZ). I called the support number, eventually being transferred to a tax expert (CPA with 43 years of experience). He could not get the interview to ask about allocating income for the AZ return either. His answer was to play around with the state-specific addition and subtraction lines; as long as the total tax owed was correct, it was not important to allocate the income on the wage line. I believe that other users would not be aware of the need to manually adjust elsewhere in the AZ return, rather than the allocation page that you shared in your screenshot. Your testcase worked as I expected, and I am still wanting to use that solution.
Is it possible for you to use a simplified version (testcase) of my tax situation for your testing?
Single taxpayer
Resident of AZ from 1/1/19-7/31/19, resident of CA from 8/1/19-12/31/19
Earned income (W2) in SC (while AZ resident): $5000
Earned income (W2) in CA (while CA resident): $15000
Standard deduction for federal and all state returns
Expected result:
SC non-resident return, $5000 income, $0 total tax
AZ part-year resident return, $5000 income, $0 total tax, TurboTax DOES ask about allocating income
CA part-year resident return $15000 income, $75 total tax, TurboTax DOES ask about allocating income
Actual result:
SC non-resident return, $5000 income, $0 total tax
AZ part-year resident return, $0 income, $0 total tax, TurboTax DOES NOT ask about allocating income
CA part-year resident return $15000 income, $75 total tax, TurboTax DOES ask about allocating income
