Changing two-state income allocation

[dcc67]

I worked from two states in 2022, one a resident state and the other a non-resident state. These states do not have a reciprocal agreement. My W-2 allocation of income and state withholdings was based on a pre-year estimate of work time to be spent in each state. My work time split was different than estimated (14% in state 2 rather than 20% as estimated).

When I work through state 2 taxes on (the first state TurboTax brings up on the screen), TurboTax desktop (Deluxe, Mac) shows my W-2 income allocation and does not give me a way to adjust that. I remember in the past TurboTax would ask me for my time split, but now it does not have an obvious way for me to change from the W-2 assumed allocation.

Can I edit this somehow without changing what I enter from my W-2?

[TeresaM]

Yes, you should not have to change your Form W-2 entries.
Please do check in the My Info section and be sure your correct address is listed for your home state and that you checked the box made money in another state. 

Then, please delete both states and reopen the non-resident state first. This will pull current information from the federal return. Watch for allocation questions in the non-resident return. That is where you will give the portion of your income earned in that state. 

After you complete the non-resident return, then reopen the resident return and it should then prompt you to allocate income and receive credit for taxes paid to another state. 

If you do not readily see the allocation sections in the state returns, please let us know which states. All of the state returns are different. 

[dcc67]

Thank you for the prompt reply.

I removed the data for each state using the menu selection (did not see a way to delete the states, so I assume I did this right). I then reinitiated the non-resident state (NC). The input screens were the same as before and the income allocated to NC was locked in at the W-2 value. I then reinitiated the resident state (ID) and eventually got a screen where I could enter income that was double taxed. So, I put in the revised NC allocation, which increased my ID income (as it should). But my NC income did not change, presumably because I was not able to reduce it while doing the NC inputs.

Suggestions?  I suppose I could enter into the specific forms and edit values, but that seems like an error trap.

[TeresaM]

It should default  to a non-resident return for North Carolina.
 

After the main screen for Income, there should be a screen Part-Year and Nonresident Income which will include several allocation screens. 
 

[dcc67]

Yes, thank you.  I get that as the second screen but the amount shown as North Carolina income While Nonresident is repopulated with the W-2 reported amount, and I cannot edit it – when I highest the existing text to change it was uneditable.  The screen before that shows W-2 income values as NonNC Source Income and as NR NC Income, and I can't edit those values either.

[ErnieS0]

You should be able to the NR NC Source and NC Resident Income amounts on the "Wages Allocation" screen. Those numbers are in white but you should be able to edit them.

If not, try deleting your W-2 and re-entering it. If you originally imported your W-2, skip the import and type everything in yourself.

[dcc67]

Thank you for the reply, ErnieS0.  I will try deleting my W-2 and re-entering all those fields.  I am not hopeful that will work.

In all my attempts so far I have not been able to edit the fields in the screen you show or in the screen that follows (that TeresaM showed in her reply). I have not had that problem in previous years.

[ErnieS0]

As a last resort, you can override the fields in Forms mode.

Overriding your data will prevent you from e-filing and void the TurboTax 100% Accurate Calculation Guarantee. If you do this, you can e-file federal and ID before making changes to state. Then you can mail North Carolina.

See How do I override (replace) an amount calculated by TurboTax?

[dcc67]

Thanks, ErnieS0.

After deleting the previous W-2 entry I was still not able to edit any of the auto-entered nonresident state income values. Either this is an oversight in the software build for this year (because I could do this in previous years), or a bug.

[MarilynG1]

If the income split on your W-2 between the two states is incorrect, don't enter that info when you enter your W-2.  Leave it blank. 

You should request a Corrected W-2 from your employer, but you can file your Federal return and wait for a corrected W-2 to file state returns later.

Here's more info on Incorrect State Wages on W-2.