I moved three times to 3 different states last year. Moving expenses are entered at the Federal level and depending if your state allows it will flow through to your state return. However, Turbotax online decides to apply those moving expenses to the first state return. I cannot see how to allocate the moving expenses to the correct state as there are no questions in the forms that ask the date of the move (to tie to the dates in the individual states allocated move dates etc.). My return is CA, NY, MA; the legitimate expenses pertain to the NY->MA move, but end up on CA state return! The 3 tests for allowable expenses make no sense if the expense is filed in the CA return. It seems to have picked it because that's the order the W2 was processed. Does anyone know how you can get around this mis-allocation of a deduction in the Online version?
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The order of how your tax return is a factor. You should prepare the returns in the order that you lived. For instance, the last return prepared for the state should be the state you lived in on December 31, 2022. If you have prepared them in another order, I suggest you delete the states then bring them back in order.
Beginning in 2018, moving expenses are no longer eligible for a tax deduction on your federal tax return however, some states such as California continue to provide a deduction on your state tax return if you qualify.
Thank you for responding. Indeed this is what I did, but Turbotax online orders the returns alphabetically and seems to flow the Federal info down to them that way; CA, MA, NY is the order they show up, even in the PDF. In terms of processing, I did MA first but it still did not show any moving expense on the right form when generating a PDF. I found them in CA return (as mentioned in my original post). - the data had already percolated there even before finishing the state returns as evidenced by the drop down numbers for State
Also, when filing it prepares filing returns in alphabetical order also. I think it must be a bug.
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