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murphc4
New Member

State Tax Calculated Wrong

My wife and I live in AL, but work in GA.  All of our W2 income is earned in GA.  It is my understanding that all of the W2 income should be taxed in GA and not AL.  We have some interest bearing accounts and I understand that those accounts should be taxed in AL and not GA.  

The issue is that TurboTax is adding the W2 income to both states which causes it to calculate that I owe money to AL even though I shouldn't. 

When I allocate how much was earned in each state through the software, I put all of the W2 income in GA and all of the interest in AL, but TurboTax puts it for both states anyway.  There doesn't seem to be a way that I can manually fix the forms for AL because the fields can't be edited. 

This same scenario worked fine last year with TurboTax Deluxe 2022.

Please help.

Thanks

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1 Reply
ThomasM125
Expert Alumni

State Tax Calculated Wrong

When you work through the Georgia return you need to indicate that you are a non-resident of the state. You will see a screen for all your categories of income on which you can indicate the amounts that belong to your resident state:

 

 

You can see on the tax summary that the income applicable to Georgia is subtracted from the Gross federal Income:

 

 

 

When you do your Alabama tax return, you will include all of your income, including the income earned in Georgia, and you will get a credit for taxes paid to Georgia, so you won't be getting double taxed:

 

 

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