Do I file a partial year return in KY and IN, if I moved from IN on 7/1/2018 to KY?

[ccapehart1]

My husband and I worked all of 2018 in KY; we lived in IN until 6/30/2018.  We purchased a home in KY on 5/8/2018, but did not move until we sold the IN home.  We have a rental property located in KY and IN.  How can I complete the partial year returns if turbo tax requests that one or the other state be completed first?

[DanielV01 · Accepted solution]

Yes, you file part-year returns for both states.  Hopefully you had the correct withholdings to each state.  By declaring the income you earned while an Indiana to Indiana, and the Kentucky income to Kentucky, the end result will be correct.  Use a 50/50 allocation to divide the income between the two if uncertain of the exact amounts.  Prepare the Indiana return first, and then the KY return.  It's best to do the state you lived in on December 31st last.