MA State Tax Due Calculation in TT as Part Year Resident Is not accurate

[Tony281]

I lived 1 month in MA and turbo tax form 1-NR/PY is not accurate.  I lived in Texas for 11 months and TT calculates my state tax as about 90% of my total tax, which is not accurate.  I should only pay tax on the 1 month I was resident in MA.  Has anyone else had the same issue with Premier?   I have tried entering in various ways to get the calculation right but it is not accurate in TT.  

[AmyC]

The MA state program asks you to input all the income not earned in MA which is opposite of most states. Follow these steps:

1. Please go back and select MA state to edit.
2. Go through your MA return until you reach You've Finished Your Massachusetts Return
3. Locate Adjustment
4. Select edit/ update/ review
5. Continue through to How Massachusetts Handles Income for Part-Year residents
6. Continue
7. Verify that all wages are entered here, all income from everywhere
8. Continue
9. Non- Massachusetts income, verify this is the total of all income earned minus your MA income.
10. Continue
11. Income earned while Not a Resident - whatever income you had the other 11 months of the year
12. Continue
13. Make any adjustments to interest and dividends, etc.

[Tony281]

Thank you.  I will follow up if no luck.  Appreciate the response. 

[Tony281]

Hi Amy, I think I am following steps above but when I get to the part that says enter Non MA income in Income Adjustment page, I enter in the 11 months of income I had in Texas in the MA Income While Non Resident and then it taxes me on that amount.   

Note, I did the paper return (Form 1-NR/PY) manually and it's correct.  

On this page "Income Adjustments" my total income field is correct and MA Income while Non Resident is correct too (1 month of income).  

Do you happen to know what else could be wrong?  

[RaifH]

You entered everything correctly:

• In Non-Massachusetts Portion of Income, enter the income you received while a resident of Texas in the Non-MA portion. The Non-MA portion should be approximately 11/12 of the total income reported.
• In Income earned while not a resident, enter the total non-Massachusetts income earned.  

By doing that, you have correctly allocated only the one month of income from your job to Massachusetts. Did you have other income from capital gains or interest or other jobs that Massachusetts may have picked up and charged taxes on? If so, you should be able to allocate only the portion earned while in Massachusetts just as you did with the income from your job. 

[Tony281]

Hi RaifH,  thanks for the response.  I can say I have entered the Non MA and MA income correctly (11/12, 1/12 respectively).  I am also classified correctly as a Part Year Resident.  I did have unemployment and there is a section that asks the amount that was Non MA and I put the entire amount since I didnt earn any unemployment in MA..only Texas.  Other than that, no other income.  

do you have any other suggestions? 

[LenaH]

If you are still getting an error, it would be helpful to have a TurboTax ".tax2021" file that is experiencing this issue.

You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions: Go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is. Click okay through this screen and then you will get a Token number. 
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

@Tony281

[Tony281]

HI Lena, yes I would like to do that however I do not see a Tax Tools on the left in the black area.  I am using the online version.  

How else could I share the file?  

here is a screen shot in my one drive: 

https://1drv.ms/u/s!AkvCjNvcBhpQiPRRDFJS2JVooUgVAw?e=Hryeza

thank you. 

[BillM223]

You on the very first screen in your Online return. Please hit Tax Home, then anything the right (like Wages & Income).

Then Tax Tools will appear on the left under Upgrade. Then follow Lena's directions.

@Tony281

[Tony281]

Hi, thank you.  Making progress.  I submitted it.  Here is the token:  959417

thank you very much for the help. 

If we need to take offline then my email is [email address removed]

[LenaH]

On the page, Income Adjustments, you entered $6,893 of Massachusetts income while a resident and $78,702 of Massachusetts income while a nonresident. If you did not make Massachusetts income as a non-resident, then the second box should be zero. This is the reason that Massachusetts is taxing almost all of your income. 

When I looked at your W-2, I noticed that Box 16 had your full wages in Box 16.  Were you telecommuting from Texas due to Covid-19 and eventually moved to Massachusetts? Why did the employer withhold Massachusetts state income tax for the entire year? 

@Tony281

[Tony281]

Lena, thank you.  I did put a 0 in that box "MA Income While Non Resident" and then it updates and my refund shows HOWEVER, in the next couple screens, TT recommends removing Schedule RNR and I do this and then after removing it, TT reverts back to all of my income being taxed in MA so essentially I am back to where I started.  If I do not remove Schedule RNR then I am not able to file electronically (per the screen shot link below).  

below  is a screen shot of what TT says to do (I cant insert an attachment apparently so link below is to my one drive):

https://1drv.ms/u/s!AkvCjNvcBhpQiPRRDFJS2JVooUgVAw?e=OQ4dmA

to answer your other query about my employer putting all my income in that box, it was an error on their part .  I was not commuting due to covid and I had never been in MA prior.  

thank you Lena. 

[Tony281]

Hi, just checking in if you happen to have any other suggestions about the Schedule RNR.  I want to file electronically but TT wont let me unless I remove the Schedule RNR but if I do then it resorts to taxing my income, which it should not do this.  

It seems like TT is not equipped to file with the Schedule RNR.  I am thinking I am going to have to file by mail.