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wynneturner
Returning Member

TurboTax is not dividing my income between states correctly

I lived in California until June 2020 on W-2 income, then moved to Ohio where I received fellowship income (taxable, but not reported on a W-2 and no tax withheld). I reported this as scholarship income on TurboTax and they seemed to handle that correctly for my federal return. However, it is not being taxed on my Ohio return, which I know is incorrect. Line 1 (federal AGI) of my Ohio return shows my California W-2 + Ohio fellowship income, and line 3 (Ohio AGI) shows the same amount. First of all, shouldn't line 3 just be my fellowship income? Then, continuing on, line 8a (nonbusiness income tax liability on line 7a) shows as 0. For some reason, TurboTax doesn't realize that my fellowship income was earned in Ohio and is taxable. How can I fix this? I have been through the state filing pages many times and answered each question correctly.

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1 Reply
TomD8
Level 15

TurboTax is not dividing my income between states correctly

Are you sure you're filing as a part-year resident of Ohio?  In the Personal Info section of TT, you should have entered OH as your State of Residence, and you should have answered Yes to the question about living in another state (CA).  You would answer No to the question about having Other State Income.

 

If you answer these questions correctly the program should allow you to allocate your income between the two states.

How do I allocate (split) income for a part-year s... (intuit.com)

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
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