How do state taxes in TurboTax if need both Virgin...
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ceTURBb
New Member

How do state taxes in TurboTax if need both Virginia 760PY (part-year resident) and 763 (non-resident) for same person?

My wife was a part-year resident of Virginia. After she moved out, she still had Virginia source income. My understanding from the Virginia state tax instructions (see below) is that she has to fill out both the part-year resident and non-resident forms, but I cannot get the TurboTax product for Virginia to allow that. Any ideas or suggestions? Could really use help!

 

We also have to fill out a Virginia return for me (a non-resident with VA source income), but that part I know how to do (create a dummy MFS federal return and then fill out 763). I cannot figure out how to do both forms for my wife within TurboTax, though. If I can't, then I don't want to have paid for the VA TurboTax product.

 

From 2020 Virginia Form 760PY Instructions (p. 6)

"Note: If you are a part-year resident who received Virginia source income, as well as other income, during the portion of the year you lived in another state, you need to file 2 Virginia returns for the taxable year. File Form 760PY to report the income attributable to your period of Virginia residency. File Form 763, the nonresident return, to report the Virginia source income received as a nonresident."

3 Replies
BillM223
Employee Tax Expert

How do state taxes in TurboTax if need both Virginia 760PY (part-year resident) and 763 (non-resident) for same person?

You are correct that the Virginia instructions say tat you need to file two different returns for the same year.

 

However, as you can see, TurboTax does not support this.

 

I would suggest that you file Virginia as a part-year return, and be sure to include all Virginia-source income from your nonresident period as Virginia-source income on your part-year return (in addition to your income while a Virginia resident).

 

In the Personal Info/My Info area, enter the accurate dates for when you were in Virginia and when you left. I believe that these dates are use to calculate the prorated exemptions.

 

However, I believe the income items are simply the numbers you enter as a part-year resident in the Virginia interview. The Schedule of Income (760PY) will list these items as "Income While Virginia Resident", which won't be exactly true, but I believe that the amounts and the tax will be correct.

 

In any case, you will make a note of what you did and why, in the very unlikely event that Virginia ever asks you why you declared income on the 760PY at times when you weren't actually a resident.

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georgrebrowne
New Member

How do state taxes in TurboTax if need both Virginia 760PY (part-year resident) and 763 (non-resident) for same person?

I need the 763 tax form filed for this year and 2018,2019

BillM223
Employee Tax Expert

How do state taxes in TurboTax if need both Virginia 760PY (part-year resident) and 763 (non-resident) for same person?

Are you just asking how you file the Virginia non-resident return for 2020, 2019, and 2020?

 

You can do the 2020 non-resident Virginia return here in the TurboTax Online product (if your prefer).

 

But to do the two previous years, you will need to acquire the CD/download software for those two years.

 

The current TurboTax Online system is for tax year 2020 - you can no longer do your 2019 return through the Online system.

 

2019 (and 2018) is now a "prior year" return. To see how to file a prior year return, please see this TurboTax Help article.

 

You have two choices:

1. To buy the CD/download software for all three years, or

2. Buy the CD/download software for 2018 and 2019, then transfer the 2019 tax file to your 2020 Online account to do the 2020 return Online.

 

See this TurboTax Help article for how to transfer from CD/download to Online.

 

***Note***

Doing the 2018 return first makes doing the 2019 and 2020 returns somewhat easier. First, some data will carry over like your personal info, W-2 names, etc, saving all that typing each year. Second, if you have any tax values that need to carry over, this will happen in only one direction - 2018 to 2019 to 2020.

 

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