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Turbo Tax using incorrect state income

For the 2025 tax year I was employed in RI from Jan 1 to Feb 10 before my employer switched me to fully remote out of NH where I live, and where I'm not required to file a state return as there is no state income tax.

My W2 shows RI wages for the year of $21,028, and this is what is entered into the income section of federal. When I get to complete the RI state return it populates with a figure of $25,562, which I correct, it then repeats the $25K number, which I correct again, and when I get to the final summary page for RI it shows my RI income as ~$180,000, and I can't edit this.

Why is it not simply transferring the number from box 16 on my W2?

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4 Replies
AmyC
Employee Tax Expert

Turbo Tax using incorrect state income

Rhode Island begins with your federal AGI. It determines the RI tax based on your full income for the year then multiplies it by the percent earned in RI. So, RI will show your full AGI but the numbers to represent the percentage need to be correct. RI does have additions and subtractions to calculate what they deem is your percentage. Your w2 wages should be coming over correctly, just being modified to meet state rules.

 

Take a look at the actual Rhode Island return. You may want to compare it with the Instructions.

To print or view  your forms, including all worksheets:

  • In desktop, switch to Forms Mode. 
  • For online:
    1. On the left side, select  Tax Tools
    2. Select Print center
    3. Select Print, save or preview this year's return
    4. If you have not paid, select pay now.
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Turbo Tax using incorrect state income

I understand the logic you described, but in my instance I was only employed in RI for roughly the first 30 days of 2025, then my employer moved my place of employment to NH where I live and promoted me, but from their perspective I only get a single W2 for the year because my employment is continuous.

There must be a way to have RI only consider the money I actually earned whilst employed in that state?

MaryK4
Employee Tax Expert

Turbo Tax using incorrect state income

You are correct that Rhode Island should only be taxing the income you earned while you were in the state.  The TurboTax entry has two options based on manual entry, which you should use because your employer provided that on your W2; but Rhode Island also allows allocation based on time and they go atomic calculating in holidays, paid time off, etc.  It seems this may be the discrepancy.  @BenSkiRideNH 

 

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

 

TurboTax Online:

 

  1. Sign into your online account.
  2. Locate the Tax Tools on the left-hand side of the screen.
  3. A drop-down will appear. Select Tools
  4. On the pop-up screen, click on “Share my file with agent.”
  5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
  6. Please provide the Token Number that was generated in the response.

 

TurboTax Desktop/Download Versions:

 

  1. Open your return.
  2. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
  3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.
  4. Please provide the Token Number  (including the dash) that was generated in the response.

 

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)


 

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Turbo Tax using incorrect state income

Token is 1328683

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