Changing two-state income allocation

Forum|Forum|3 years ago
February 10, 2023
2 replies
15 views

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?

tmunoz

Level 13

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.

dcc67Author

Level 3

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.

tmunoz

Level 13

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.

dcc67Author

Level 3

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

Level 15

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.