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When you say that you stayed in two states, do you mean that you moved from one state to another? Or did you go back and forth? What states did you live in? Please provide more information so we can help you.
Yes, I moved from one state to another . no back n forth
I was in MA and moved to OR and continued with my MA employer.
You would file a part year return in both states. In each state, you would allocate only the income earned while a resident of that state. If your income isn't broken out properly on your W-2, you can calculate the amount earned in each state by reviewing your paystubs or estimate the amount based on number of days in each state.
How should I calculate the state tax for both the states as turbotax shows me tax due for MA and I think that's not right. I have imported the W2 and entered the state wages and local wages information for both the states.
Should I calculate the same from paycheck and then enter or should I reach out to my employer ?
Your employer may be helpful in correcting the W-2 or in giving you the taxable amounts to each of the states. Or, perhaps, the income may be allocated by the amounts recorded on your W-2 of state and local wages in each state.
If Massachusetts is claiming the entire wage income, you may be able to allocate the wage income to Massachusetts at the screen Income Adjustments in the Massachusetts part-year resident state income tax return.
The income may be allocated to Oregon at the screen Oregon Source Income and Adjustments in the Oregon part-year resident state income tax return.
Should I enter the value that's there in state wage box for both MA and OR?
There is no value in local wage box for MA and there is a value for OR. Also is it not correct that the sum of two state wages should be equal to the amount in box 1?
Whether this income break box will be there on federal tax filing or state tax filing in Turbotax?
Yes, you should enter what is on your W-2 for both states. Massachusetts (MA) will tax you on your full year wages because the income was from sources in MA. Oregon (OR) will tax you only on the income earned while you were a resident. Check your pay stubs for the accurate amount based on your move date.
No, due to the reason stated MA should have the full amount of wages and OR will have only the wages earned while you lived there. You will likely have the chance to adjust the income on each state return when you prepare them (see the images provided by @JamesG1).
MA Nonresidents and Remote Work
Non-residents are taxed on items of gross income from sources within the Commonwealth, including income derived from or connected with any trade or business, including any employment, in Massachusetts.
Credit for taxes paid to another state is allowed by a resident state when the same income is being taxed to another state. Your resident state does not want you to pay tax twice on the same income. The credit that is allowed will be the lesser of:
For OR you will be allowed a credit for the wages earned as an OR resident that are also taxed by MA. In your situation you will have to do some calculating.
@deepgarg-iit
I don't get the boxes for income breakup when I am filling info on TurboTax. In which section I should check for the income breakup?
You can use the pay stubs to figure out the income for each state of residency. When you are in each part year state make sure you are taxed on only the income for that state when you were a resident. It would make sense that the combined total of state wages should equal box 1. It's not guaranteed because each state taxes income differently and not always like the federal (box 1). If you are confident the employer broke it up correctly, then use those amounts.
If necessary to help, you can print your return before you file.
You have access to all forms when you choose to print your return in TurboTax Online/Mobile. However you are required to pay before printing, but do not have to file until you are ready.
If you are using TurboTax Desktop you can switch to Forms and review all forms and worksheets.
@deepgarg-iit
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