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How do you set up part year resident in 3 states in TurboTax. I have only been able to add 2.

 
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4 Replies

How do you set up part year resident in 3 states in TurboTax. I have only been able to add 2.

You don't.

One of the states would have to be considered a temporary stay as-if you were in that state as a Non-resident, and did not actually become an official "resident".....usually that is the middle state.

 

BUT...the details of when you "moved" your whole lot of household goods, to which states, and how long you were in each state might be important (And whether you worked there)..... and also whether you replaced your Driver's license, re-registered vehicles, or registered to vote in the 2 new states could all become important.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

How do you set up part year resident in 3 states in TurboTax. I have only been able to add 2.

My daughter move her household twice.  From MO to OH (apartment) in Jul 2023.  Move from OH to KY (purchased a home across the river) in Oct 2023.

So she was a resident of MO , OH and KY.  The W2 has income in all three states.  Must file in all 3 states.

How can I get the software to handle this situation.

DianeW777
Expert Alumni

How do you set up part year resident in 3 states in TurboTax. I have only been able to add 2.

It depends.  You can file five state with TurboTax Online.  If you use TurboTax Desktop, you can e-file five federal returns with up to three state returns each. However, you can paper-file as many returns as you’d like.  Just add another state for each state you need, which is very simple in either version of TurboTax.

Begin by adding the required states in the W-2 entry by 'Add another state' option/button at the bottom of the state wage and withholding section.

TurboTax cam handle the states you need to file.  It's important to enter dates on each state that represent the time period your daughter was in each state.  

 

As you go through the state returns be sure to watch the screens to confirm the amount of income for each state.  Some states start with the federal adjusted gross income (AGI).  They will user either of the following:

  1. annual income to arrive at a tax amount, then use a percentage based on the proration of income for the state, divided by the total federal income;  Or 
  2. reduce the total income to arrive at the income taxed by the specific state then calculate the tax.

You can use the link below to see if your daughter is required to file each of the states she needs:

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How do you set up part year resident in 3 states in TurboTax. I have only been able to add 2.

You treat the OH place as a temporary state...not one she moved to.

 

So, in the Personal Info section, she indicates she was a resident of KY at the end of the year, and she "moved" there in Oct of 2023 from MO.   Then, at the bottom of the Personal Info page, she indicates she had Other State income in OH...so she has a non-resident OH tax return for the time she spent there.

_____________________

BUT...the reciprocal tax agreement between KY and OH is going to make it all very, very messy to do yourself....that is, if she worked in KY while living in OH, or worked in OH while living in KY.....then a Professional preparer definitely might be needed (yeah, opinion).

 

.....  But if she only worked in OH while living in OH, and only worked in KY after moving to KY, then using TTX should work "fairly" easily.  Still might take a busy 2-weeks of work....with some definite frustrations.  (Time for a tax pro locally in KY?)

____________________

Other: MO does things strangely for Part-Year residents, giving a person the option to either file a Full-yr-MO tax return, and taking a credit for taxes paid to the other states...or doing a full-yr Non-Resident MO tax return, and then specifying just the $$ amount received during the year that are truly MO income.  It's a probably a tossup.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
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