Turbotax incorrectly filing as part-year Massachusetts Resident

[ng171]

I have finished filling in my state and federal taxes. I was a full year resident in MA in 2023, but a Form 1, 1-NR/PY is being filed with my State tax return. In addition, the federal NII tax is incorrect because it assumes taxes are paid in another state on the interest excluded from MA return. 

[ng171]

In the preliminary "Person Info" section, I have stated that "No I didn't make money in any other states" as well

[SharonD007]

Review the personal information that you entered to ensure that TurboTax helps you create the correct state tax return. 

1. Open Turbo Tax and select My Info
2. A Personal profile summary screen will pop up
3. Select Edit by your name
4. Scroll through the screens to ensure that you have the correct answers for your state of residence and make sure that you haven't selected that you lived in another state.

[ng171]

Hi @SharonD007! Thanks for the reply. I went through the "Your Personal Info" page, and my State of Residence (as of 12/31/2023) is Massachusetts, I've selected "No" to living in another state in 2023, my mailing address is in Massachusetts, and my "Other State Income" is "None" and I'm still having the issue where it considers me a part-year Resident for Massachusetts. 

[AmyC]

Did you enter a state exemption for interest income other than Mass after entering a 1099-INT or 1099-DIV? The federal NII is wrong? How?  From the journal of accountancy:

When you go through the MA return, be sure to edit residency there as well. Can you identify the other state and why it is coming into the program? Did you upload a statement that includes other states? Can you clarify what occurred, what is happening and what needs to happen?

See About Form 8960, Net Investment Income Tax Individuals, Estates, and Trusts

[ng171]

Yes, thank you for the help!  I was a full-time Massachusetts resident. I did not have any income in other states. I have confirmed on the Info section that my State is listed as MA. I have also confirmed in the State section (on the Massachusetts Main Form page) that I have selected "Resident Form 1" (as opposed to part time resident, non-resident, etc.).

What has occurred? In my Massachusetts state return, I'm receiving a 2023 Form 1 that says "For Full Year Residents only," for the first page, which is correct. But then I am also receiving a Form 1, 1-NR/PY later in the document in my Massachusetts state return relating to Schedule B Line 3 and Schedule B Line 6. The Schedule B Line 3 page just included "0." (which is the correct amount). Then on the next page, "Form 1, 1-NR/PY Schedule B, Line 6," the Line 1 includes the interest I received from US Debt Obligations (which is correct) and the Line 4 reads "0.". Then, at the bottom of the page, there's a section that says "Massachusetts Nonresident and Part Year Resident Excludable Interest and Dividends" and "Note: Only use this worksheet if you are not filing as a full year Massachusetts resident." And then in that section, Line A includes all of my interest income from Schedule B (lines 1-3). Since I'm a Massachusetts resident, shouldn't this section be left empty? 

Thanks again!

[AmyC]

The Sch B is used for both Form 1 for residents along with Form 1 PY/NR. If your tax forms are correct, then it is not an issue. Otherwise, I can dig into your situation.  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:
Sign into your online account.
Locate the Tax Tools on the left-hand side of the screen. 
A drop-down will appear. Select Tools 
On the pop-up screen, click on “Share my file with agent.”
This will generate a message that a diagnostic file gets sanitized and transmitted to us.
Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:
Open your return.
Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent”
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.
Please provide the Token Number that was generated in the response.