Part-Time Resident w/ Unearned Income

[9squam1SH4]

Hello,

I was a Part-Time Resident in PA for 5 months in 2020. I have unearned Income to report.

I selected "Part-Time Resident" and marked the dates I lived in PA. TurboTax auto-calculated the tax due on the ENTIRE 12-months. Do I need to print out the State Tax Form and manually make the correction to the Tax Due?

[DanielV01 · Accepted solution]

It depends on the nature of the income.  For many types of unearned income, the income is either 100% received in PA or it is 100% not received in PA.  This would be the case with capital gains income, for example, which is considered received (and therefore taxable) on the date of the capital transaction.  The transaction is entirely taxable in one state or another in this case.

The PA return does have screens to assign and unassign certain income as taxable or not taxable in PA.  Their standards for programming do not allow tax preparation software to automatically exclude otherwise taxable income that might be taxable in PA.  Rather, there is a manual entry (a check box) that allows you to do so.  You will see a screen entitled Confirm this Income.  If all of the income is not taxable in PA, then the checkbox may be selected to exclude that income.

If you must prorate the amount of the reported income that needs to reported to PA, please comment the type of income it is and how much you believe should be reported to PA.  We can give you additional assistance in this case.