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homesteadinspect
New Member

I lived in PA half the year, then moved to TX. My PA return generated by Turbo Tax shows my full year dividend income as PA income. Shouldn't only half be PA income?

 
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DanielV01
Expert Alumni

I lived in PA half the year, then moved to TX. My PA return generated by Turbo Tax shows my full year dividend income as PA income. Shouldn't only half be PA income?

It depends.  Most states, when determining your tax as either a part-year resident or a nonresident, first determine how much tax you pay on all of your income, and then prorate the amount of tax on the percentage of income earned in that state.  With a source of income such as dividends, it is possible that a manual entry is required in the PA return, but the same percentage can be used to determine the amount of dividends that are taxable in PA.

Of course, Texas has no state income tax, so there is no filing requirement in Texas.

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DanielV01
Expert Alumni

I lived in PA half the year, then moved to TX. My PA return generated by Turbo Tax shows my full year dividend income as PA income. Shouldn't only half be PA income?

It depends.  Most states, when determining your tax as either a part-year resident or a nonresident, first determine how much tax you pay on all of your income, and then prorate the amount of tax on the percentage of income earned in that state.  With a source of income such as dividends, it is possible that a manual entry is required in the PA return, but the same percentage can be used to determine the amount of dividends that are taxable in PA.

Of course, Texas has no state income tax, so there is no filing requirement in Texas.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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