topic Non-resident state income too high in State tax filing

Non-resident state income too high

photo245 — Tue, 09 Mar 2021 06:14:33 GMT

My residence and home are in one state, and I work for a company located in another state. On the non-resident state filing Turbo Tax has said my income is too high. If the income was earned in the non-resident state, shouldn't it be reported? Can the ratio be 1?

Re: Non-resident state income too high

SweetieJean — Tue, 09 Mar 2021 13:34:04 GMT

Please quote exactly what the TT message says.

Re: Non-resident state income too high

Hal_Al — Wed, 10 Mar 2021 12:28:46 GMT

What is you home state and what is your work sate?

The rules vary. That said, it is not unusual for the non-resident state to first include ALL you income. Then it will apply some sort of ratio to determine the tax on only the non-resident state income.

Re: Non-resident state income too high

photo245 — Wed, 10 Mar 2021 04:45:32 GMT

Live in UT and work in MT.

Re: Non-resident state income too high

photo245 — Wed, 10 Mar 2021 04:47:21 GMT

"Tax Schedule: Line 1, column A - Montana source wages, salaries, tips, etc. is too large."

Re: Non-resident state income too high

DMarkM1 — Wed, 10 Mar 2021 16:29:36 GMT

This is related to your W2 specifically the state boxes 15-17. The amount on that line 1 column A cannot exceed the amount that was reported to MT on your W2.

Did your employer withhold any amounts for MT on your W2? If not, you should enter a line for MT use the FED ID number without the dash for the state ID, enter the wages from box 1 but leave withholding blank.

You will pay your MT tax with your return and get a credit for taxes paid to another state from UT.

You should have your employer withhold for MT and not UT on your W2 in the future as UT will tax everything anyway as your resident state.