Virginia Taxable Income Allocation

[tlmckeon]

On the Worksheet for Spouse Tax Adjustment and Virginia Taxable Income Allocation, Part 2 - Virginia Taxable Income Allocation, says complete lines 12 through 15 if taxpayer or spouse is claiming a credit for tax paid to another state, and filed a separate return with the other state.  We did not file with another state in 2020.  Why has the turbo tax program made entries on lines 12 and 15?

[LenaH]

TurboTax is making entries on Lines 12 and 15 of the 2020 Virginia Schedule OSC (Credit for Tax Paid to Another State) because somewhere in TurboTax screens there was an entry for a second state. 

Are a Virginia full-time resident and have income that is sourced from another state? Generally, income is considered sourced in the location the services were provided. 

Per the State of Virginia, if you received income from another state and were required to pay income taxes as a nonresident in that state, you may be eligible for a credit for the income taxes you paid to that state provided the income is also taxed by Virginia. If you earn income in a state that doesn’t have an income tax, you are not eligible for this credit on that income.  

If you did have income sourced from another state, you would have to file a non-resident return with that second state. 

However, from the information provided in the question, it sounds like you are a full-time Virginia resident and have no out of state income. If so, the first thing you want to do is make sure you've filled out the Personal Info section correctly:

1. With your return open, select My Info in the left-hand menu.
2. Then, on the Personal info summary screen, please make sure Virginia is listed under both of your names.
3. Then, scroll down to Other State Income, and confirm there is not another state for the question Did you make money in any other states? 
4. Select Continue to return to your Personal info summary.
5. Click on State on the left hand side. 
6. Confirm there are no additional states on the State summary page. 

Lastly, since Schedule OSC is just identifying your spouse as the person claiming the credit, then I would start by reviewing all her tax information inputted. Make sure that Virginia is selected for each screen. 

[jojo52319]

When you enter dividends into TurboTax, you should be prompted as to whether the dividends belong to you, your spouse, or to both of you.  Make sure you've checked the right box.  This is what drives the allocation of dividends on the Virginia Taxpayer/Spouse allocation worksheet.

[jojo52319]

Sorry, for whatever reason (maybe user error?), this post did not appear linked to the conversation I was trying to respond to.  Don't know why this happened.  My apologies.

[CK_VA]

I have the same problem with Worksheet for Spouse Tax Adjustment and Virginia Taxable Income Allocation.  I'm using the CD/download version of TurboTax, which is filling out Part 2 for Virginia Taxable Income Allocation.  We have not reported any income from outside Virginia. and I haven't found any incorrect state entry.  TurbotaxTax has not created Virginia Form OSC for us -- which we don't need because we are not claiming a credit for tax paid to another state.  

I suspect there is a programming glitch in the worksheet that makes it fill out an unneeded Section 2  But I had to waste a lot of time to make sure that I wasn't missing something important.