topic Re: Problem entering wages for second state-AZ-for 2017 return. in State tax filing

Problem entering wages for second state-AZ-for 2017 return.

ccnichols02 — Wed, 07 Apr 2021 13:57:14 GMT

Problem entering wages for second state-AZ-for 2017 return. I completed the federal form first, then CO was completed automatically by Turbotax. When I purchased and downloaded the AZ state form, it does not allow me to enter my wages, which were provided on a 1099-MISC.

Re: Problem entering wages for second state-AZ-for 2017 return.

TomD8 — Wed, 07 Apr 2021 14:13:08 GMT

Income reported in Box 7 of an 1099-MISC or on a 1099-NEC is not "wages." That income is considered self-employment income, and is entered as business income in TurboTax. It is not entered in the Wages and Salaries section.

If you enter 1099-MISC in the search box, and then click on "Jump to 1099-MISC", the program will take you to the proper section.

Re: Problem entering wages for second state-AZ-for 2017 return.

ccnichols02 — Wed, 07 Apr 2021 14:20:12 GMT

The amount was entered on Schedule C with info provided by a 1099-MISC from University of Northern Arizona. However, it does not transfer to my AZ return and is apparently being counted as income in CO.

Re: Problem entering wages for second state-AZ-for 2017 return.

TomD8 — Wed, 07 Apr 2021 14:33:13 GMT

Is CO your state of residence? Were you in AZ temporarily in order to attend school?

Re: Problem entering wages for second state-AZ-for 2017 return.

ccnichols02 — Wed, 07 Apr 2021 14:40:49 GMT

CO is my state of residence. I was at UNA for an educational institute for which I was paid.

Re: Problem entering wages for second state-AZ-for 2017 return.

TomD8 — Wed, 07 Apr 2021 14:50:40 GMT

In the My Info section of TT, be sure you entered CO as your State of Residence. Then indicate that you had Other State Income from AZ. Do NOT indicate that you moved to AZ. Then complete the non-resident AZ return before you do the home state CO return. This should result in both returns being correct.

Note that your home state of CO can tax ALL your income, including your income from AZ. AZ can tax only the income you earned in AZ. You'll be able to claim a credit on your CO return for the taxes paid to AZ, so you won't be double-taxed.

Re: Problem entering wages for second state-AZ-for 2017 return.

ccnichols02 — Wed, 07 Apr 2021 14:58:30 GMT

All that residency info appears to be correctly entered, as TT asks specifically if I made any money in another state besides CO, i.e. AZ. There was no indication at all that I had ever been an AZ resident.

As for doing the AZ return first, I can't seem to undo the fact that I did CO first, purchased the AZ state return, then attempted to complete it. How can I undo the fact that I did CO first? The program allows no access.

Re: Problem entering wages for second state-AZ-for 2017 return.

TomD8 — Wed, 07 Apr 2021 15:10:12 GMT

It's a bit tedious, but if you are using the desktop version of TT and if you haven't filed anything yet, you can just start a new return from scratch. Then just file the new return.

Re: Problem entering wages for second state-AZ-for 2017 return.

ccnichols02 — Wed, 07 Apr 2021 15:31:42 GMT

Can I just delete the state returns from my TT files, then try again? A previous response to a similar question said she tried starting a new return and it still didn't work. I'm really not eager to have this happen.

Re: Problem entering wages for second state-AZ-for 2017 return.

TomD8 — Wed, 07 Apr 2021 15:36:48 GMT

I think that should work, since your federal return doesn't need to change.

Re: Problem entering wages for second state-AZ-for 2017 return.

ccnichols02 — Wed, 07 Apr 2021 15:56:08 GMT

How would you recommend that I delete just those files?

Re: Problem entering wages for second state-AZ-for 2017 return.

TomD8 — Wed, 07 Apr 2021 16:37:03 GMT

See the instructions in this previous TT answer:

How do I delete a state return without starting al... (intuit.com)

Re: Problem entering wages for second state-AZ-for 2017 return.

ccnichols02 — Sat, 10 Apr 2021 13:20:01 GMT

We finally solved the problem, though it didn't work quite the way you described. Thanks for the help!