State Portion of Federal Adjustments

[mmehmedbasich]

I am assuming that the state portion of federal adjustments is the same percentage as the income earned in that state compared to the another state (I have a residence in California but work 95% of the time in Colorado).

[MonikaK1]

Each state has its own laws, and some calculate the income allocation between states differently.

If you were a California resident all year, you would file a California Resident return and a Colorado Nonresident return.

Prepare the Nonresident Colorado return first. Only your income earned in Colorado would be taxed there. Note the tax liability for Colorado (not the withholding or the amount due with the return, but the actual total Colorado tax computed). Then, you may be able to take a credit on the California return for taxes paid to Colorado. California will tax you on all of your earnings including those from another state.

See also this TurboTax article and this one on multiple-state situations.

[mmehmedbasich]

I prepared my California Resident return first and Colorado Nonresident return second.

Why does TurboTax ask for Colorado's portion of federal adjustments?

I applied the same apportionment percentage I calculated for the income.

[CatinaT1]

I would delete your state returns and enter them in the correct order. Do Colorado first and then California.