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Level 2
June 3, 2019
Question

Sold primary house in NE, then moved to OK in 2018. Entered 1099S in Turbotax and it wants us to fill out a 561NR for OK. Not sure how to fix.

  • June 3, 2019
  • 2 replies
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2 replies

June 3, 2019
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June 3, 2019

You need to indicate that you are a part year resident for each state so that the income is allocated properly. Please see the screen shot below. 

If you were a resident of 2 different states during the tax year (for example, if you moved from one state to another), you'll normally file part-year returns in both states, assuming each state collects income tax and you had income in each state.

TurboTax handles part-year returns, but you need to make sure you've set up your personal information correctly to trigger the part-year state interviews:

  1. With your return open, select Personal Info.
  2. Click Edit next to your name.
  3. Select your resident state from the State of Residence drop-down.
  4. Answer Yes at the line below (that you lived in another state during 2018).
  5. Select your former state from the Previous state of residence drop-down.
  1. Enter the date you became a resident of your new state. This can be the date you arrived in that state.
  2. Select Continue to return to the Your Personal Info Summary screen.
  1. Repeat Steps 3-5 for your spouse, if needed.

After you finish your federal return, you'll automatically move to State Taxes, where you'll see your part-year states listed. We suggest you prepare the return for the state you currently live in, followed by your former state. 

Important: If you also see a nonresident state return on the State Taxes tab, complete that return before you work on your part-year return(s) to ensure your tax credits are calculated correctly.


mnz2psAuthor
Level 2
June 3, 2019
We had already done that, both of us did it like you listed.  We have both states listed as part time resident and it still falls in the Oklahoma tab even though the address is listed as Nebraska.  The house falls under the taxable amount and was our primary residence so we shouldn't get taxed on it, I just thought we should have it listed seeing how the IRS got a copy of the 1099s as well.