Is there an order to complete multi-state returns?

Forum|Forum|7 years ago
June 3, 2019
1 reply
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I live in Delaware, work in Pennsylvania and have rental income in Arizona.

Last year, I completed returns for all three states and Turbo Tax showed me getting refunds from all 3.  I thought, "Great!!" until Pennsylvania sent a letter mid year saying that I owed the refund money back to them.

Given that I have residency in only one state, is there an order in which I should be completing the state returns so that they are calculated correctly?

Further, if order is important, how can I verify / change the order for last year to see if my refund from DE would be different given that I had to pay back PA?

Thank you

TurboTax Free Edition Online

Anonymous

They key is to make sure your federal tax return is complete, then prepare the tax return for your home state--Delaware--last. It doesn't matter which of the other two states you prepare first, but it might be easiest to to the Arizona return first.

It's important to do your resident state return last so you can claim the tax credit for taxes paid to other states on that return. Until you prepare your nonresident state returns, TurboTax cannot claim that credit for you.

Please read on for more information

https://ttlc.intuit.com/replies/3302052