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TigerFury
New Member

What unearned income to allocate to a part year nonresident state?

I live in Florida and work in Georgia until my company officially made it work remote in 2021 during October.  I had my employer change my state on my paycheck to Florida, which has no state income tax at this time.  I know I need to report my earned income in Georgia one more year via state nonresident filing.  However, I also had a lot of unearned income(dividends/stocks/etc).  Should I allocate that income strictly on when it was received during the year(before October-report as Georgia income) or allocate it over the whole year based on number of days nonresident of GA?  

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1 Reply
HelenC12
Expert Alumni

What unearned income to allocate to a part year nonresident state?

Allocating unearned income is pretty straightforward: just allocate it to the state you were a resident of when you received it. Stock sales are allocated to the state when you received it. Interest and dividends may be split. Here are some examples to help you allocate your unearned income.

  • You received three quarterly dividend payments while living in Arkansas, and the remaining dividend while living in Oklahoma. Allocate the first three payments to Arkansas and the last payment to Oklahoma
  • You sold some stocks right after you moved to Iowa. Allocate the gain to Iowa.
  • You closed an interest-bearing account while still living in California, so you'd allocate 100% of the interest to California
    • On the other hand, if the account remains open, you'd allocate the interest you earned as California resident to California, and the remainder to your new state. An easy allocation method is to divide the year's interest by 12, and then multiply the figure by the number of months you lived in each state.

Please see How do I allocate (split) income for a part-year state return?

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