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Capital Gains Split Between 2 States

My total Capital Gains for all of 2021 was $1111.

I also lived in Virginia and Washington DC in 2021 but one W2 for all year.

On the Virginia 760PY section A column A the amounts show correctly.

Total Capital Gains $1111.      Virginia $463.      Wash DC $648

 

But when I complete the Wash DC state form on their D40 Capital Gains shows $1111.

It should have $648. but I don't know how to change that or what form.

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1 Best answer

Accepted Solutions
ErnieS0
Expert Alumni

Capital Gains Split Between 2 States

DC does not split capital gains for part-year residents. All income earned while not a DC resident should be totaled and subtracted from the DC return.

 

In the DC section of TurboTax, go to the screen Subtractions Federal Income, Part-year and enter Income Received While Residing Outside DC.

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2 Replies
ErnieS0
Expert Alumni

Capital Gains Split Between 2 States

DC does not split capital gains for part-year residents. All income earned while not a DC resident should be totaled and subtracted from the DC return.

 

In the DC section of TurboTax, go to the screen Subtractions Federal Income, Part-year and enter Income Received While Residing Outside DC.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Capital Gains Split Between 2 States

I had a lower value in that field, but even correcting it for VA income.

Now D-40 has the correct income for VA on line 8 (Part year residents income) and correct for line 16 (DC Adjusted income).

 

But on the DC D-40 form Capital Gain or Loss line C still has the total 2021 value of $1111.

DC should be $648. but I cannot update this field on Turbo Tax Deluxe.

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