We moved from VA to CA in Aug 2017. We own a TH in VA that we get rental income from. Can TurboTax Premier figure out how to split our VA and CA taxes?

[DianeW · Accepted solution]

Yes. TurboTax will help you figure out the split of income.  File both the Virginia (VA) and California (CA) returns as part year residents.  You should be taxed on each for the income earned only during the residency period for any job related income in each state.  This will be determined by the two letter abbreviation on the W2 Forms.

• First, check the My Info Info tab in the black navigation panel on the left > 
• Next check Other State Income to be sure you show you lived in two states 
• Click the image attached to enlarge and view.

Rental income should be taxed on VA state return in full because the property resides in and the income is derived from VA.  Then on the California return you should use the 'Credit for taxes paid to another state" (on the same income). When asked about the income taxed to both states enter the full profit/net income of your rental income.  This eliminates being taxed twice on the same income in two different states.

Do not add a nonresident return because this does not apply for 2017.