TurboTax is indicating that I owe ±$2,400 to DC, despite having income withheld throughout the time I lived in DC. When I follow the instructions for the D-40 EZ (working quickly to get a ballpark number, using standard deductions, etc.) I seem to find that my tax burden is also landing around ±$2,400. Over $3,000 of my income was already withheld according to my W-2s, so why does TurboTax indicate I owe additional tax to DC? Is it neglecting to account for the withholding on my W-2?
In 2017, I lived in DC from Jan-June, then Virginia from June-Dec. The only thing I can think might make a difference is if my DC income is still taxed at the higher bracket based on my full annual income rather than the income I received while living in DC.
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Since you were a part-year resident of DC, when you go through the DC portion of TurboTax you will see a screen, Subtractions From Federal Income,Part-year. [Screenshot #1, below] Enter the amount of your income you received after you moved to Virginia.
Otherwise TurboTax will think all the income was attributed to DC.
To make the changes:
If the income is split into two in box 15-17 (one showing DC income, one showing VA income), are you still supposed to put all income made after the move to Virginia in the "Subtractions from Federal Income, Part-Year" field?
Thanks
No - As long as the amounts on your W-2 seem correct for the VA and DC allocation, you don't have to do anything. TurboTax will pick up the amounts from the W-2.
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