ErnieS0
Expert Alumni

State tax filing

Yes. She can claim a Massachusetts rental deduction if her move to MA was permanent (even if she is staying with a friend). Your daughter will only claim her share of rent paid. The same with her friend.

 

MA also allows a moving expense deduction for transportation of household goods and personal effects and travel (including lodging but not meals) to the new residence.

 

The Georgia income tax return will show a large refund because your daughter’s employer continued to withhold GA tax after she had moved to MA.

 

The MA tax return should show a balance due because she worked for half a year in MA and had no MA tax withheld. What probably happened was that TurboTax did not pick up any MA income since the state code on the W-2 was GA.

TurboTax will ask you to split MA and GA income on the screen Non-Massachusetts Portion of Income. TurboTax will then calculate Income Earned While Not a Resident. You will also have to deduct the portion of Social Security and Medicare tax withheld while your daughter was living in GA on Non-Massachusetts Portion of Deductions.

 

The renter’s deduction is on Additional Massachusetts Deductions.

 

Enter moving deductions in Deductions & Credits and it will move over to the MA return.

 

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