I am claiming 2 differnt incomes from 2 different states. When entering informtion for the each state's income tax filing it is taking my overall income for both states therefore increasing my tax liability for that state. How do I separate the both for s

[DanielV01]

It depends, but neither state taxes the income to the other state (if you are filing part-year returns to each).  However, they each will factor in all of the income to determine the amount of tax.  Here's an illustration:

Let's say you work 1/2 of the year in State A and earn 25,000 there.  The other 1/2 of the year you work in state B and earn 25,000 there.  What both states do is figure out how much they would tax all of your income, and then prorate the tax proportionately to the amount of income actually earned in the state.  

In this case, State A would have 1,500 tax on 50,000, so your tax in State A would be 750.  In state B, your tax would be 2,000 on 50K, so your tax on 25K earned there is 1,000.

Having said this, however, there are a couple of states that have subtle entries that must be added to ensure that the program calculates your tax correctly.  If you wish to comment the states you were in last year, I'd be able to provide a little extra guidance.

[dwayne-santistev]

Thank you Daniel. I receive a pension beginning April 2016 throughout the year and received income for work performed from the state of NM until late March 2016. My employment with AZ overlapped NM in March when I started my new job. Do both states take into consideration my overall income with regards to paying each state its' tax? Thanks again

[DanielV01]

Yes, both states do. Each will look at your income and determine how much they would tax all of it.  States vary as to what they include and exclude as income on the state returns.  Because of this, you can get significant variety on the state tax returns.  But, each state does use the overall income to determine how much they tax the income that is attributed to that state.