topic Spliting interest earned in two states of residnecy in State tax filing

Spliting interest earned in two states of residnecy

lnovotney — Fri, 07 Feb 2020 04:04:46 GMT

My daughter was a resident in two different states during 2019. There was interest earned from several accounts during the year. As I read the tax code, the interest needs to be split between the two states. How do I split the interest earned using the turbo tax program

Re: Spliting interest earned in two states of residnecy

ColeenD3 — Fri, 07 Feb 2020 17:39:13 GMT

It depends. If the interest was generated the entire year, it has to be prorated. If it was earned exclusively in one state, then it is taxable to that state alone.

Re: Spliting interest earned in two states of residnecy

lnovotney — Mon, 10 Feb 2020 04:39:41 GMT

Yes and no. I asked two questions. Did interest earned over the year need to be split between two states of residency. That was answered. The second question was how to show this in turbotax. After working the issue within the state return, I believe I have figured out how to split the funds.

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Re: Spliting interest earned in two states of residnecy

costaemt — Sun, 24 Jan 2021 15:43:21 GMT

I am in a similar situation. Two states (MO and VA) with interest earned on a savings account (approx $1,200) and dividends/cap gains (around $3,000). How do I split the unearned income between two state income filings? Four months in one state and 8 months in the other state.

Re: Spliting interest earned in two states of residnecy

DianeW777 — Sun, 24 Jan 2021 16:10:16 GMT

Each state return sections you must indicate the taxpayer was a part year resident. When you are in each part year state return, you will be asked about the income categories and allocation. Be sure to enter only the amount of interest in each state that should be taxed to that state.

See the image below. This example in the MO state return interview (each state may look somewhat different, however you will be asked about income allocation in a part year resident state.