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davi2188
New Member

Turbotax auto-correcting earned income allocation

I moved states last year, but my company did not change my home address until months after the move, so I overpayed in Missouri and underpaid in North Carolina. I am filing as a part-year resident. When I try to enter the income allocation in turbotax's state refund, the tax tool shows I owe NC, but when it reviews the entire refund, North Carolina auto-corrects my earned income back to what is on the federal W2 section. Can I get around this or do I need to get a corrected W-2?

3 Replies
BillM223
Employee Tax Expert

Turbotax auto-correcting earned income allocation

"When I try to enter the income allocation in turbotax's state refund" - did you mean "state return"?

 

"when it reviews the entire refund" - did you mean "entire return"? If so, was this in the federal or final review or in the state review?

 

"North Carolina auto-corrects my earned income back to what is on the federal W2 section" - this does not sound right, something else must be going on.

 

"Can I get around this or do I need to get a corrected W-2?" Do NOT get a corrected W-2 - I assume that the W-2 accurately reflects to whom what amounts of state withholding were sent.

 

Does TurboTax really change the amount of income for North Carolina after you entered the apportioned amounts? That would be very odd behavior.

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davi2188
New Member

Turbotax auto-correcting earned income allocation

Hi Bill, thanks for responding.

 

Sorry for the language confusion, yes I mean state return and entire return. The change happens during the "final review" after I have completed both states and the federal return.

 

When I go through the NC state return, I manually change the allocations for income since it does not match what the W2 has (which I imported for the federal return). Everything updates fine (I can see the refund number change) until I get to the final review. Once I do the final review, Turbotax forces the allocations for the NC state return back to what was brought in from the federal return and I can see the refund amount change again.

BillM223
Employee Tax Expert

Turbotax auto-correcting earned income allocation

"Turbotax forces the allocations for the NC state return back to what was brought in from the federal return"

 

Are you actually looking at the Tax Summary for your state or are you just watching the Refund Meter?

 

To see the state summary, if you are using the Online products, please look to the left for Tax Tools, then Tools, then in the center, View Tax Summary. On the left, look for your state's tax summary.

 

This is not the actual form, but it will give you some granularity on income and expenses. Take a snapshot of this summary, then do the Final Review and do the snapshot again. Do the income numbers (not the refund) actually change?

 

If the Review does actually change the state's income numbers, then I would have to look at a sanitized version of your return to have any idea of what it is doing. Note that I am on until 11 pm CDT today (Friday), and if we can't do this this evening, it will be Wednesday before I can get to it again.

 

If that's OK with you, please read the following:

 

***

 

I'm going to need your help to get more information. Please send me 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:

***Online Product***

 

  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. Click on Share my file with agent.
  4. This will generate a message that a diagnostic copy will be created. Click on OK, the tax file gets sanitized and transmitted to us.
  5. Please provide the Token Number that was generated onto a response to this thread.

 

***Desktop Product***

 

  1. Click into your return.
  2. Click Online and select "Send Tax File to Agent".
  3. This will generate a message that a diagnostic copy will be created. Click on OK, the tax file gets sanitized and transmitted to us.
  4. Please provide the Token Number that was generated onto a response to this thread.

At the end of the reply, please add @ BillM223 (without the space in between) so that I will be notified.

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