Partial Louisiana Resident state filing management for interest, dividends and gains for income allocation

[calo45487]

Hi,  I moved from Louisiana to Texas on 7/15/2022.  I am completing my state tax form in Turbotax the state tax form is asking me if interest dividends and gains are subject to Louisiana tax.  I see no guidance in the program on how to do this and i do not understand why it is asking me vs. allocating like it did on my earned income.  I cannot find information for the 2022 tax year for LA on how to manage interest, dividends or gains as far as LA income or if i am to prorate the total for partial time of residency in the tax or set to zero.  How is this supposed to be managed for the state filing?

thanks, Jason

[MayaD]

Unearned income comes from non-employment sources, such as interest, dividends, capital gains, social security, and IRA distributions

You allocate the unearned income to the state you were a resident of when you received it.

You need to file LA part-year resident return.

Income received before moving to Texas is considered LA income. 

How do I allocate (split) income for a part-year state return?

Edited [030/03/2023, 11:13 AM, PST]

[calo45487]

Ok thanks. So i can just do a straight prorated allocation, as i lived there for say 100 days so 100/365 x total interest dividends and gains income and add that to total earned income for Louisiana filing? Why doesn’t turbotax do this automatically for unearned  when it knows when i moved and adjusts earned income?

Jason

[MarilynG1]

Yes, you can do the prorated allocation and enter that amount in your Louisiana return.  The issue with TurboTax doing the allocations for state returns is that different states tax part-year resident income differently.

Some states want you to enter the income amount belonging to that state, while others tax all your income and apply a % to tax owed (based on amount of time lived there). 

When TurboTax adjust Earned Income for you, it is usually because that income was reported on a W-2 or Form 1099 and was already broken out. 

Here's more info on Filing Multiple States.