Virginia Form 760PY INC and Social Security

[paulv7260]

I moved from Virginia to Florida in 2022 and I'm filing Virginia form 760PY as a part year resident. Virginia does NOT tax social security yet when I allocate the portion of my social security income that I received as a Virginia resident TurboTax includes it as taxable income. Note that form 760PY INC does not break out social security from "Pensions and Other Income" but to reconcile to my Federal return I have to include it there. Am I doing something incorrectly?

Thanks

Paul

[tagteam]

You may have to contact Support for this issue.

How do I contact TurboTax? (intuit.com)

[paulv7260]

Thanks but, yeah, well, I don't have the disposition for that. I'm trying to be nice about my situation and TurboTax State. I will simply state that it is failing in so many ways that I've lost confidence in it.  If I were to contact tech support I cannot guarantee that I would be very pleasant. Best that we're kept separated 🙂 I'll contact a Virginia tax expert.  I don't think TurboTax has any of those. The peace-of-mind will be worth it.

Thanks again

Paul

[VolvoGirl]

You shouldn't have to enter anything about SS on the VA return since it is not taxable.  Did you enter it in the right spot on the federal side?  Did it show up on 1040 line 6a & 6b?  

Enter a SSA-1099, SSA-1099-SM or RRB-1099 under

Federal Taxes on the left side or top

Wages and Income

Then scroll down to Retirement Plans and Social Security

Then the second line - Social Security (SSA-1099. RRB-1099) - click the Start or Revisit button

[paulv7260]

Yes, it did. I have no problems with my Federal return. TurboTax transferred it to my Virginia form 760PY Income Schedule. Note that I was a part year Virginia resident in 2022. That is where TurboTax begins to fall apart. There is NO step-by-step. It simply says that I must use the "Married Filing Separately" filing status with a link to the community. Just a "Back" button. NO "Next" button. My Federal status is "Married Filing Jointly" but according to Virginia, TurboTax is correct since I was a part year resident but my wife was not a Virginia resident at all. I had to manually change the status on the forms as there is no step-by-step.

Then, according to the Virginia web site, I had to prorate my income since my W2 listed all of my wages as Virginia wages. I also have to remove a dependent grandchild since she was not in my care while I resided in Virginia.  Without step-by-step and an expert level knowledge filling out the forms became quite the adventure.

The whole idea here is to get the Virginia income to reconcile to my Federal income which the 760PY instructions says must happen. I could not do that using just the forms without TurboTax adding my Social Security as taxable income. 

I looked into the "Live" service but that doesn't do state. All I want is for my Virginia tax return to be correct. 

Sorry for the long reply but my situation is not a routine one.

Thanks

Paul

[MichaelG81 · Accepted solution]

Social Security isn't taxable in Virginia. When you get to this page, enter 0 for Taxable Social Security Benefits, because VA doesn't tax them, even if you have other income or it's taxable at the federal level. This website from Virginia State Tax Authority explains it. Try side by side for user friendly navigation for your state return. But remember, follow these instructions FIRST!

@paulv7260

[SundayInSalem]

Virginia does not allow part-year residents to file a joint state return unless BOTH of you are Virginia residents.

Virginia says:

You may use Filing Status 2 (Married, filing a Joint Return) if you are married and (1) you filed a joint federal return; (2) both you and your spouse are Virginia residents, or (3) neither you nor your spouse was required to file a federal return.

If you and your spouse filed a joint federal return, but only one of you is a Virginia resident, the resident must use Filing Status 3 (Married, Filing a Separate Return).

Refer to Part-Year Residents.

You will have to create a “mock” state return to file separately. TurboTax is not set up to create a joint federal and separate state returns.

See: How do I prepare a joint federal return and separate state returns?

[paulv7260]

Thanks. This is pretty much what my wife and I are going to attempt tomorrow. I'll let you know.

Paul

[paulv7260]

Thanks. You are correct. We have selected filing status 3.

I was not aware that TurboTax could not handle this situation.  I appreciate the candor. This explains the lack of step-by-step.

We will attempt the mock solution tomorrow.

Paul

[paulv7260]

@MichaelG81 

Thanks for the guidance. It worked perfectly! We followed the instructions which allowed us to have step-by-step through the state return. We'll e-file the joint fed return but have to mail in the married filing separate state return. LOL! That will bring back some memories for sure!

Thanks again!

Paul

[paulv7260]

@SundayInSalem 

Thank you for the guidance. It was pretty much the same as the guidance provided previously. It worked so thank you for your help!

Paul