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skeirnes
Level 2

Part year residents

My husband moved to TX (non income tax state) from ID Feb 1, 2020. I continued to live and work in ID until April 10, 2020 when our home sold. I know that because ID and TX are both community property states we must pay Idaho tax on half of TX income my husband made from Feb 1-Apr 10 while I was still living in Idaho. My question is, will turbo tax allow this type of split/allocation? I’ve used turbo tax for years but never had something this complicated? 

1 Best answer

Accepted Solutions
Hal_Al
Level 15

Part year residents

See https://ttlc.intuit.com/community/income/help/how-do-i-allocate-split-income-for-a-part-year-state-r...

 

I'm not  specifically familiar with the ID software.  But generally, it goes like this: once you tell TT, in the personal info section that your were part year residents of two states, you will get allocation screens in the state software.  It will either ask you to allocate your ID income or your non ID income (read carefully). 

 

Some (most) times the allocation screens will not allocate W-2 income.  Instead, you allocate at the W-2 screen (in the federal section) by state abbreviation in box 15.  Because TX does not have an income tax, the employer may not show this on the actual paper W-2.  You have to type in info for boxes 15 and 16. Put TX in box 15 and the amount of wages allocated to TX in box 16.  Use a 2nd line at the W-2 screen to show ID in box 15, the portion of wages, for the time in ID, in box 16 and ID withholding in box 17. 

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6 Replies
Critter-3
Level 15

Part year residents

Ok ... first you will file jointly so the community property rules are not applied.  Next, because you moved you will file a part year ID return and will allocate ONLY the income earned in ID while a resident of ID ... read all the screens in the state interview carefully.  

skeirnes
Level 2

Part year residents

Your answer is not correct. I spoke with the Idaho State tax commission and because Idaho and Texas are community property states and because I was living in Idaho and a resident while my husband was a resident of Texas we must pay tax on half the income he earned in Texas while I was living in Idaho. https://tax.idaho.gov/i-2015.cfm?seg=specific  I just need to know how this will work with the intuit software. 

Critter-3
Level 15

Part year residents

Why are you doing a MFS allocation if you are filing a joint return ???    When you allocate the income earned while a ID resident it will include the TX income on a part year return... you will pay taxes on ALL the TX income while he was still an ID resident ...   technically, even though he moved before you did he was still a resident of ID until the house was sold... dont' make this any more complicated than that.    If you feel uncomfortable doing this yourself then seek local professional assistance with this return.

skeirnes
Level 2

Part year residents

My husband was a TX resident and I was an Idaho resident (yes this can happen). I know what income should be claimed. https://tax.idaho.gov/i-2015.cfm?seg=specific This link explains that we only pay tax on half the TX income since my husband was a resident of TX (not all like you are saying). Again, I was just wanting to know if intuit software can handle this situation. 

Critter-3
Level 15

Part year residents

Please use the following link to contact Customer Support for further assistance.

https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632

Hal_Al
Level 15

Part year residents

See https://ttlc.intuit.com/community/income/help/how-do-i-allocate-split-income-for-a-part-year-state-r...

 

I'm not  specifically familiar with the ID software.  But generally, it goes like this: once you tell TT, in the personal info section that your were part year residents of two states, you will get allocation screens in the state software.  It will either ask you to allocate your ID income or your non ID income (read carefully). 

 

Some (most) times the allocation screens will not allocate W-2 income.  Instead, you allocate at the W-2 screen (in the federal section) by state abbreviation in box 15.  Because TX does not have an income tax, the employer may not show this on the actual paper W-2.  You have to type in info for boxes 15 and 16. Put TX in box 15 and the amount of wages allocated to TX in box 16.  Use a 2nd line at the W-2 screen to show ID in box 15, the portion of wages, for the time in ID, in box 16 and ID withholding in box 17. 

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