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JackSpiceman
Returning Member

TurboTax Says $0 tax due for Part-Year MA/NY Resident

TurboTax is saying I owe $0 in MA income because it is double counting tax-exempt, out of state income as a deduction from total federal interest income. Is this correct? Details below (with made-up numbers that illustrate the point).

 

I moved from MA to NY in April of last year. My interest income in the two states is as follows and I had no W2 income in MA.

 

MA Interest/Dividend Income: 10,000

NY Interest/Dividend Income: 40,000

Total Interest Income: 50,000

 

MA Portion from US Debt Obligations: 2,000

NY Portion from US Debt Obligations: 18,000

Total Interest from US Debt Obligations: 20,000

 

In Schedule B on my MA return, TurboTax is calculating line 7 to be $0 because it is subtracting $40,000 (Out of state income) and $20000 (Total US Debt obligations) from $50,000 (total interest and dividend income). This feels like double counting. I feel like line 7 should be $50,000-$40,000-$2000=$8000.

 

Is the $0 on line 7 really correct? This is making it so I have no income whatsoever in Massachusetts, which doesn't seem correct to me.

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2 Replies
JackSpiceman
Returning Member

TurboTax Says $0 tax due for Part-Year MA/NY Resident

On my federal return, when I enter a 1099-DIV, I can only specify the full $20,000 when saying "A portion of these dividends is U.S. Government Interest." Is there anyway to specify different amounts for different states if I moved states during a year?

CatinaT1
Expert Alumni

TurboTax Says $0 tax due for Part-Year MA/NY Resident

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