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Turbo Tax calculating tax on nontaxable income

Turbo Tax is taxing my IRA deduction on my 1099R in a state I did not live in.

 

For example, I moved from CA in 2024.  CA being a taxable state.

I worked for a CA company in 2025 for 20 days in January while I was living in a nontaxable state TX.

I understand my CA "wages" are taxable and need to be reported to TX.  My W2 wages are not my concern.

 

 

I've already located the Income and Deductions edit screen for the CA return.  I've "subtracted" the amount from the federal income to arrive at the lower CA income for the 1099-R income.  However, TT is "still" calculating CA tax due on the 1099-R income even after the subtraction from the federal amount.  Please help.  

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3 Replies

Turbo Tax calculating tax on nontaxable income

Me again......the one asking the question.

Yes, I did answer the Turbo Tax non-resident questions indicating I moved out of CA in Dec 2024.

Can't figure out why TT is calculating 2025 tax due when I moved away in Dec 2024 and was a non-resident for 20 days in January.  Please help.

Turbo Tax calculating tax on nontaxable income

Correcting my original post....I understand my CA W2 wages need to be reported to CA.....not TX.

 

Struggling here.....sorry.

AmyC
Expert Alumni

Turbo Tax calculating tax on nontaxable income

Your 1099-R is nontaxable to CA since you were a non-resident all year. Please verify that you have CA marked as nonresident for 2025. Verify that your personal address was changed and has your new state of TX listed. You definitely need to delete the errant 1099-R.

 

This could be a technical issue.  In TurboTax, sometimes you need to clear your cache (that is, remove temporary files). Follow these steps:

Online version:

  1. Delete the form/ worksheet- if possible, see How to Delete  
  2. Log out of your return and try one or more of the following:
    • Don't use Internet Explorer.
    • Clear cache and cookies,
    • Sign in using a different browser.
    • Sign in using a different device.
  3. Log back into your return.
    • Enter the information again.

Desktop version: 

  1. Delete the form
  2. Save your return while closing the program.
  3. Update the program
  4. Open
  5. Enter the information again.
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