My daughter was a resident in two different states during 2019. There was interest earned from several accounts during the year. As I read the tax code, the interest needs to be split between the two states. How do I split the interest earned using the turbo tax program
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It depends. If the interest was generated the entire year, it has to be prorated. If it was earned exclusively in one state, then it is taxable to that state alone.
Yes and no. I asked two questions. Did interest earned over the year need to be split between two states of residency. That was answered. The second question was how to show this in turbotax. After working the issue within the state return, I believe I have figured out how to split the funds.
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I am in a similar situation. Two states (MO and VA) with interest earned on a savings account (approx $1,200) and dividends/cap gains (around $3,000). How do I split the unearned income between two state income filings? Four months in one state and 8 months in the other state.
Each state return sections you must indicate the taxpayer was a part year resident. When you are in each part year state return, you will be asked about the income categories and allocation. Be sure to enter only the amount of interest in each state that should be taxed to that state.
See the image below. This example in the MO state return interview (each state may look somewhat different, however you will be asked about income allocation in a part year resident state.
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