Helping son with taxes. He worked 5 months in New Mexico. Lived the rest of the time in a Texas (no state income tax). I listed him as non resident on the New Mexico State income tax form. But what do I list for interest, dividends, capital gains/losses? The entire year’s worth or just the 5 months he was in New Mexico? I have yet to see a question asking what time he spent there (less than 6 months).
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In general, interest, dividends and capital gains/losses are allocated wholly to the resident state. None is allocated to the non-resident state.
How do you NOT allocate capital gains to the non-resident state?
I used to live in MA but now live in TX (for the entirety of 2019). I'm filing MA state tax as a NON-RESIDENT b/c I still have some rental properties there. For some reason, TurboTax is allocating my capital gains income to MA and showing MA tax due on it. How do I exclude my capital gains from MA state tax???
As you go through the state return for Massachusetts (MA), you should be asked for each item of income, the portion that is to be allocated to MA:
You'll see an option to indicate that your capital gains were "Non-Massachusetts source":
When I entered each stock sale separately and check marked non-Massachusetts, turbotax doubled my capital gain amount. Where am I going wrong? I must be entering something wrong. It seems as though the federal tax return capital gain transfers to the MA non-resident return and is being taxed as capital gains, even though the same capital gain I entered in the state return is not being taxed.
My federal entries are not showing up in the “easy steps”, so I cannot checkmark "non- Massachusetts source” without re-entering each capital gain into the MA non-resident tax return. Help!
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