Son moved domicile in 2024 from TN to PA after 195 days in TN (no tax state). Had different job in each place. Will owe tax on investment income. Because he has no TN state tax return, we can't seem to account for his TN residency when doing his PA tax return. Can we somehow indicate how much investment income was made while living in PA or will he have to pay taxes on the full year of investment income to PA? TN being a no tax state was great for his earned income, and can't seem to file for credit for TN having no taxes on some of the income in TN, so how does he benefit from no taxes on his investments while he lived in TN?
Can anyone give us a step-by-step on how to report? Can he benefit from any kind of statutory residency? We put the date of the move on the personal info on Federal return and did a change of address. Thank you for any guidance!
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You will pay the taxes on where he was living when he received the investment income (if this is easily identifiable) or you can use a percentage to allocate based on the time spent as Pennsylvania resident.
You will be able to allocate in TurboTax how much investment income is Pennsylvania compensation (see below).
On the Part Year Pennsylvania return, he can allocate the income to account for the Tennessee income.
Go to the state section of TurboTax and follow the questions. Look specifically for the screen below, and please feel free to post if you do not see it or have any additional questions!
I shall definitely try that when I get the remainder of his information! Thank you so much; I may be back if further questions!
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