State Filing for Two States

[wyatt206]

I worked in MT for the first half of last year and WA for the second half, a state without an income tax. Turbo tax is calculating my entire income earned as if it was earned in MT even though I specifically called out what amount was earned in MT. Since I don't file WA income tax how can I adjust things to only be taxed in MT for the income I earned in MT? 

[MaryK4 · Accepted solution]

Montana uses the Tax Liability Schedule Nonresident/Part-Year Resident Tax to identify your Montana income and then applies it as a ratio the the state tax due as computed to all your income for the year.  If you did the income allocations in the state part, you will see that only a part of the total tax is due.  If you did not see where you allocated the Montana income, go back to the Montana state part of TurboTax and make sure you are filing a Part-Year return.