TurboTax desktop is using wrong income for second IT-203-B Schedule A NY state return

[taxman26]

I am filing a married return for NY where I need to use the calendar method for the W2s of both spouses, with different dates (as we switched roles from NY to out of NY at different times). There appears to be a bug on Turbotax Desktop on Mac. Starting with a fresh NY return, here's what I did:

1. I did allocation for spouse 1, select calendar method, fill in calendar days (looks fine)

2. Proceed to spouse 2, select calendar method, fill in calendar days

3. TurboTax then asks for the calendars for spouse 2 AGAIN

After you enter the calendar days the second time, it kicks you out. Now when I look at the IT-203-B form, I have two schedule As, both for spouse 2, with the calendar days I filled for (2) and (3). Is there any workaround for fixing this? I can't file my taxes like this.

[taxman26]

If a rep is reading, diagnostic copy is at token 966948

[DaveF1006 · Accepted solution]

Yes, I do see where the spouse's information was added twice and the first spouse's wage information did not get included in the return.  

I went to the state interview section and tried to enter the Taxpayer's information for his/her wages from their employer.  Did not allow me to enter information in accordance with the calendar year method. Here is my solution.

1. In the state interview section, select the add button underneath the Taxpayer's allocation section.. Add the TP's employer a second time and report the wages. This time the program will allow you to enter the days.
2. Now go to the spouses wage allocation section. Keep the information intact in the first part of the interview.
3. When it asks for the information again, zero out the days employed and leave the rest of the section blank. What this does is that it declares all New York income non-taxable in that second entry. This is what we want because the taxable New York income is already determined in the first part of the spouse's allocation.
4. Now go to your forms and view the allocation worksheet in your NY forms. You should see an allocation amount that is slightly less than $2M in Column 1D.
5.  Next go to your copy of the IT 203B. This will look a little odd but it is correct. 
6. You should see the spouse's information listed for his/her employer and the correct amount of the allocation in Schedule A.
7. For the second Schedule A allocation, you will see the TP's employer and then the correct allocation amount.
8. There is an entry in the third Schedule A but ignore that. That is appearing because of the steps entered step 3 above. This should not impact your NYS tax return.
9. Now verify that both Line P's total from the Schedule A's match line 1D of the allocation worksheets AND the New York state taxable amount in the IT-203 page 1. This should match.
10. Let me know if this works.

@taxman26

[ Edited 03/29/22|07:30 PM PST]

[taxman26]

Ach hans! I literally filed my taxes an hour before this message showed up. The way I resolved it in the end was I deleted one of the calendar allocation entries that was causing trouble, went to forms mode, manually filled in an IT-203-B Schedule A form (TurboTax didn't let me fill in computed values, so I left them blank), and then I manually added the total into Alloc Wk to get the correct number (I needed to update that number anyway to handle IT-203-F). This gave me a form with what I think is the correct number, and just a few missing calculated values (but all of the important stuff is in the form).

In a few days I'll try redoing the return with the trick suggested here and see if I get the same numbers in the end.

[DaveF1006]

To clarify, did your numbers generate an amount slightly less than $2M in Column 1D in the allocation worksheet?

@taxman26

[taxman26]

My final numbers are less than 2M but I think in the sample I sent you I put in nonsense data for the allocations (I just did enough to trigger the bug).

[taxman26]

I redid my return with the method here and confirmed that I got the same result as my manual workaround. Do you think I should file an amended NY return to get the calculated fields filled? My NY return has not been accepted yet.

[DMarkM1]

No do not file an amendment.  Wait first to see if the return gets accepted by NY.  If it gets rejected then you can correct before resubmitting.  If it gets accepted wait for NY to fully process it.  They will then notify you if you need to make corrections.