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Does TT base on its 1040 values entered whether a WA resident must file a state return due to capital gains or low income, or does it automatically include WA for all filers? I had submitted about 1/2 of my 1040 data over the course of a week and then suddenly yesterday morning, I see that it has included a Washington return.
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No, it is not automatically added for all WA residents. Washington doesn't have income tax; they only have the capital gains (excise) tax. Did you enter capital gains transactions yesterday? Without capital gains on your return, TurboTax should tell you that you do not need to file a state return. But once you enter something that triggers the capital gains tax, TurboTax will add the WA capital gains/excise tax return.
Depending on your situation, TurboTax may ask about the WA state Working Families Tax Credit - you can claim it using TurboTax!*
*New for tax year 2024 is the integration of the Washington State Working Families Tax Credit (WFTC) into TurboTax. Taxpayers in Washington eligible for this credit can now seamlessly file for it from within their TurboTax account.
Thank you for the information, Dawn. I did enter capital gains, but my gain does not exceed the $270K standard deduction. It appears that TT wants me to report the amount even though there will be no tax due.
Correct. The presence of capital gains in your federal return triggers the program to create the return without regard to the amount of capital gains. As you are probably aware, you only have to file the capital gains tax return if you owe capital gains tax.
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