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New Member
posted Jun 6, 2019 3:15:20 AM

Dividing dividends based on the state you lived in.

I received dividend payments for stocks in 2016. I also moved states. Turbotax is asking me to divide the dividends between State A & State B. How can I do this correctly? Or were they all received in one state since I did not change brokers when I moved?

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1 Best answer
New Member
Jun 6, 2019 3:15:22 AM

Allocating dividend 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 3 quarterly dividend payments while living in Arkansas, and the remaining dividend while living in Oklahoma. Allocate the first 3 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 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.

2 Replies
New Member
Jun 6, 2019 3:15:22 AM

Allocating dividend 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 3 quarterly dividend payments while living in Arkansas, and the remaining dividend while living in Oklahoma. Allocate the first 3 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 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.

Level 2
Aug 21, 2019 2:33:06 PM

Michael -  I have a question that you may be able to help with (I asked elsewhere too given I wasn't sure where to post) - here it is:

 

I am moving from FL to NC in mid October and have dividends that will arrive around that time.  Since FL is a tax-free state, I'd obviously not pay taxes when I'm here.  My question is - if I move to NC in mid-October and receive dividends that month (but the ex-dividend date was in September while I was a FL resident), are they re-portable on for NC given they were "earned" in September but paid in October?  This reminds me of my year-end 1099-B which states taxed in another year for some dividends even though I received it in a different year.  I hope that was clear - thank you.