I am a part-year resident of two states. I entered my charitable contributions, but they're not yet allocated to where I lived when made. How to set to the right state?

[vonlost]

At the moment they're fully deducted by both states which the states' computers will know is wrong.

[MaryK4]

Which states are you referring to?  Most states use the federal amounts then prorate for the time you were a part-year resident.  

@vonlost

[vonlost]

Yes, CA and OR both *expect* them to be pro rated, but where is the place in TurboTax to *do* the pro-ration? Income pro-ration is provided, and others, but I don’t see charitable deductions.

[vonlost]

Currently they’re fully deduced by *both* states.

[AmyC]

States will either allocate income and then prorate the deductions based on the income OR allocate everything. If the program is not asking, you are in the first group which prorates based entirely on the income.

In the first group, it does look like everything is being fully deducted but there will be a ratio somewhere in the paperwork that makes it all work out in the end.

You can double check your state return by previewing it. 

To see your state returns:

1. Log into your return
2. select Federal
3. on the left side go to Tax Tools
4. click on Tools
5. Pop up box, click on View Tax Summary
6. left side, click  Preview my "State"

[vonlost]

I am in neither group; my charitable deductions were not allocated based on income (which would be wrong in my case), nor were they allocated at all.  The deductions wound up fully assigned to *both* states, i.e., I am getting all charitable deductions twice.  TurboTax properly asked for income and 1099 and some other data to be allocated, and the proper allocations were made, but TurboTax never asked for an allocation of charitable deductions.  Perhaps only someone who has actually solved this problem can help.

[MaryK4]

Neither California nor Oregon will allocate deductions if you itemize- the total will be applied to your federal AGI to determine your state rate that is then applied to your state income (which is allocated).

@vonlost

[vonlost]

Thanks, Mary, but I don't quite understand.  Where in my CA and OR tax return can I see that the allocation was made?  The Fed Schedule A line 14, CA 540NR Part III line 14 and OR-A line 21 are all the same.  There is a place on CA 540NR Part III line 14 to make the adjustment, but no way in TurboTax that I can find to enter the subtraction.  Thanks for your help!

[ThomasM125 · Accepted solution]

Unless the state requires you to only deduct contributions made while in that state, then you are to use the amount you deducted on the federal return. If you read through the instructions for the state tax returns in California and Oregon, I suspect there is no mention of only being able to deduct contributions applicable to each state.

[vonlost]

The California 540NR Part III line 14 column B is blank, but other column B entries are correctly present. I find no instruction to prorate charitable deductions by presence in state at time made, so, Thomas, I think you are right, and I do get the full deduction in both states. Hooray for small benefits! Thank you!

[AmyC]

Correct, CA takes the deduction from the CA income and later, applies the tax rate percentage to the CA taxable income. States do not generally get worked up over the deductions, just the income. States can track the income they feel they should be taxing but have no way to track the deductions easily.