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posted Jun 1, 2019 11:05:21 AM

What does it mean to allocate federal adjustments?

It's telling me because I was a nonresident of a particular state for part of the year, I have to allocate federal adjustments. What does this mean?

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1 Replies
Level 15
Jun 1, 2019 11:05:23 AM

A Federal adjustment on a return could be a student loan deduction or a IRA deduction, or a number of other items.

So the Federal return has an adjustment to income on it, and the non-resident state return needs to know if that adjustment also applies to that state return.

Many times on a non-resident return the adjustment does not apply to the non-resident return.