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Level 2
posted Jun 3, 2019 11:08:07 AM

Massachusetts part-year resident return: how to allocate interest and dividends between MA/non-MA?

After allocating my wages between the two states, I get the following screen:

You reported the following interest and dividend income on your federal return:

- Interest income zero

- Dividend income $1,500 (note: this is the full dividend amount from the federal return)

We already know about the following Massachusetts adjustments and exclusions:

- Total Massachusetts bank interest zero

- Excludable bank interest zero

- Other interest or dividends to be excluded zero

Do you have any additional interest or dividend income to report or any to exclude?

However, after answering Yes here, I am only asked further questions about other situations that don't apply (e.g. MA Schedule E). I don't ever get the question of what dividends were received while I was an MA resident. As a result, the full $1500 for the year goes onto the MA return as taxable, which isn't correct. Where exactly in the interview can I find the screen that lets me enter that apportionment?

The problem appears to be MA-specific, because Georgia (the other state in my case) does ask for the apportionment between GA and non-GA. However, the non-GA amount doesn't flow back to the MA return in any way; MA continues to show the full amount as the dividends even after completing GA.

(Note: I attempted to submit this question already, but it has disappeared. Forum glitch?)

0 12 5506
12 Replies
Level 2
Jun 3, 2019 11:08:08 AM

For anyone else who might be encountering the same problem -- I was able to work around it by entering the non-MA total on the "Other Interest and Dividends to Exclude" screen (which results in an explanation statement being attached to the return).

I do think there is a product issue, in that this entry is missing from the allocation screen where it should be. See the examples below comparing the MA screen to the GA screen.

New Member
Jun 3, 2019 11:08:09 AM

I have the same problem with not being able to allocate PY-Res dividend income away from MA, was it reported to TT?

New Member
Jun 3, 2019 11:08:10 AM

I am currently having this exact problem.  All interest and dividend income save MA bank interest, is being allocated to MA, despite being a part year resident.  Turbo Tax automatically allocated wages and earned income from my W-2, but there is no way to do this manually for the non MA portion of interest and dividend income.  This, despite purchasing the plan that allows a CPA to review my return with me.  He cannot figure any other option but the aforementioned work around.  
The work around is a poor option as it requires a paper return rather than being able to e-file.  Part of the reason I pay for Turbo Tax in the first place is not to encounter these issues.

Level 2
Jun 3, 2019 11:08:12 AM

I could not figure out a way to report this issue to Intuit. Had a long call with support with a very helpful rep who understood the problem but did not seem to have a way to report the issue to a product team.

One minor note on the “other exclusions” workaround, I was still able to e-file so I don’t believe the workaround prevents it. Agree though the issue should be resolved at the product level.

Level 2
Jun 3, 2019 11:08:13 AM

(Duplicate)

Level 2
Jun 3, 2019 11:08:15 AM

(Duplicate)

Level 2
Jun 3, 2019 11:08:16 AM

(Duplicate)

New Member
Jun 3, 2019 11:08:17 AM

I, too, encountered this problem. I agree with the conclusion that this is an unfortunate product issue and a was a real pain to deal with.

That being said, for the benefit of anyone else who comes across this question in the future, I can confirm that this workaround does seem to be an appropriate way to account for unearned income that was received while a resident in another state/country according to MA's instructions for 2018 Form 1-NR/PY. See page 33 of <a rel="nofollow" target="_blank" href="https://www.mass.gov/files/documents/2019/02/25/dor-2018-form-1-nrpy-inst.pdf">https://www.mass.gov/files/documents/2019/02/25/dor-2018-form-1-nrpy-inst.pdf</a> for details.

New Member
Jun 3, 2019 11:08:18 AM

Same here. Is TT fixing this? Is one way to workaround this to file a Schedule R/NR Resident/Nonresident Worksheet along with the Form 1-NR/PY?

Level 4
Jun 3, 2019 11:08:21 AM

Same here! Why does this problem exist for such a long time?

New Member
Jun 3, 2019 11:08:23 AM

Having the same issue, please fix this!  I have dividends and capital gains that aren't subject to MA tax, yet they carry over and there isn't a good way to exclude them.

Level 2
Jun 3, 2019 11:08:25 AM

Screenshot re-attached as image