Dividing 1099INT between 2 states.

[BobRichmond]

We lived in Florida till May and then moved to Oregon. I have a 1099INT from a bank in Florida that we still are using while in Oregon. Do I split the total amount based on the length of time we lived in each state or just report it all to Oregon?

It will make no difference to the taxes as they will be $0. in either case. I just do not want to have to go thru an audit.

[DawnC]

Enter the full amount on the federal return.   When doing your state return (you will only have Oregon as Florida does not have income tax), you can allocate based on the length of time you resided in Oregon during 2023.   Allocating unearned income is pretty straightforward: just allocate it to the state you were a resident of when you received it. Here are some examples:

• You received three quarterly dividend payments while living in Arkansas, and the remaining dividend while living in Oklahoma. Allocate the first three payments to Arkansas and the last payment to Oklahoma.
• You sold some stocks right after you moved to Iowa. Allocate the gain to Iowa.
• You closed an interest-bearing account while still living in California, so you'd allocate 100% of the interest to California.
  • On the other hand, if the account remains open, you'd allocate the interest you earned as a California resident to California, and the remainder to your new state. An easy allocation method is to divide the year's interest by 12, and then multiply the figure by the number of months you lived in each state.

[BobRichmond]

Well I suspected all that, but can't figure out how exactly to get to the point in the TurboTax Free online program to even see a breakdown of the income allocated to Oregon.

Thanks for your time and effort in answering my question. Hopefully you or another replier can tell me how to do it in the program.

[DawnC · Accepted solution]

You enter everything in the Federal section and TurboTax will transfer that information to your State return.   After you enter the federal information, click on State Taxes on the left side menu.   Make sure you set up your personal information correctly so TurboTax knows you moved during the tax year and handles your state income correctly.   When you go through the state return, you will be asked how much of that income belongs to Oregon.   

*******How to File a Part Year State Return  - - this article explains how to ensure your personal information (My Info section) is set up correctly to generate the correct state returns.  

[BobRichmond]

Thanks again. At this point it doesn't ask when I moved and I don't see any way of checking if I have even given it that info. Guess I will just have to trust that I did and they calculated the Oregon amount correctly. Will have to put in my wife's SSA1099 when we get it, so will see if it splits that correctly.

[DawnC]

In the My Info section, it asks for your resident state, and then it asks if you lived in any other state during the year.   It is the first or second page in the My Info section.   Edit your address and it will show the fields.   TurboTax won't ask about allocating income unless you tell it that you lived in two states.