My wife worked from home in RI(full time residence) for a MA company but actually worked 40 days in MA. How to I calculate that?

[jffiii]

Also, if I have to calculate % of days in each state, what do I do with holidays and vacation days? And is there an allocation are in TurboTax or do I just calculate offline and enter amount?

[DanielV01 · Accepted solution]

This does require manual calculation.  You could use percentages if you choose.  A nearby state, New York has a form for this, and I will use the principles on that form to guide you in this case.  What you first do is calculate the number of working days she had in the year.  The working days are days she was paid (which may include holidays, vacation, and sick days but excludes unpaid days off).  Then, she divides 40 (the number of days she worked in MA) by the number of working days you calculate above.  This represents the percentage of days she earned money on her total income from her company, which she then multiplies by her actual salary received.  The end result would be the allocation or apportionment to Massachusetts.

The other method is to contact her company and see if they actually have a figure for the amount of days and income earned while in Massachusetts.  Obviously, if you have actual figures it is better; but if not, the method above is acceptable.  Document your method in case the Massachusetts DOR wishes information on how you arrived at that figure.  Prepare this information in the nonresident return first so that TurboTax may calculate the correct credit for your Rhode Island return.