A TURBO TAX POP-UP HAS ME CONFUSED AND CONCERNED ABOUT UNINTENDED CONSEQUENCES. (SEE ADDED COMMENTS)

[gdshepardsr]

I moved from Texas to Kansas during 2018 and have mineral rights rents and royalties in Oklahoma, so knowing I will need to file Federal, Part Time Kansas Resident and Non Resident Oklahoma returns for the mineral rights rents and royalties (Texas does not have state income taxes).  I purchased the 2018 Windows CD version of Deluxe software that prepays the cost of my Federal Return and one of my two State Returns (Part Time Kansas and Nonresident Oklahoma).

I successfully completed the Fed Return in Turbo Tax and have not yet filed the return.  Next I successfully completed the Oklahoma Non Resident return (bar coded form 511NR) on line via the State of Oklahoma web site for the Oklahoma mineral rights rents and royalties and have not yet filed the return.  Finally I prepared the Kansas Part Time Resident Turbo Tax prepaid state return during which I encountered a Turbo Tax pop up at the beginning of “State Taxes” that stated: “Tip: When preparing returns in multiple states, it's best to do your nonresident and/or part-year resident state returns first, and your resident state last”.

MY QUESTON IS TWO FOLD:

(1) THE “TIP” REFERS TO DOING A STATE RETURN.  DOES “DOING” MEAN THE ORDER OF PREPARING THE STATE RETURNS OR ORDER OF FILING THE STATE RETURNS?

(2) WHAT DIFFERENCE COULD IT POSSIBLY MAKE WHETHER I FILE THE PREPARED TURBO TAX KANSAS PART TIME RESIDENT RETURN OR THE NON TURBO TAX OKLAHOMA NON RESIDENT FIRST?  WHAT BAD THINGS WILL HAPPEN BASED ON THE ORDER OF FILING?

[JulieCo]

Yes, the "tip" is related to preparation and meant to help you, the taxpayer, get the most tax benefits by recommending the order of preparation of your tax returns.  The reason for the recommendation of non-resident returns to be prepared first, is that some states give residents "credit" for taxes paid to other states.  Therefore, TurboTax recommends (not requires) that non-resident returns be prepared first in case a taxpayer's resident state will give credit for taxes to be paid to other non-resident states. 

Also, please note that TurboTax does not allow state returns to be FILED before the federal return.  And, if the federal return is filed separately from the state, the state returns cannot be filed until the federal return is accepted by the IRS.  See more information below:

https://ttlc.intuit.com/replies/5269973

[gdshepardsr]

Thanks for your quick response.  First I should say that there will be no tax refunds in any of the three returns.

Based on your response my plan of action is to:
(1) efile the Fed return and remit the tax owing separately.
(2) wait for notice of acceptance from Turbo Tax (hopefully this will not take more than a few days).
(3) file OK non-resident return immediately upon receipt of acceptance by mail along with tax owing.
(4) finally file KS part time resident return by mail along with tax owing before 4/10/19 (5 days before the tax date deadline.

CAN YOU TELL ME IF ARKANSAS AND KANSAS PARTICIPATE IN THE "CREDIT NOTIFICATION PROCESS" YOU DESCRIBE AND IF SO WOULD THE CREDIT NOTICE BE QUICK (1 OR 2 DAYS) OR THE PROCESSING TAKE WEEKS OR MONTHS?  

[JulieCo]

The credits that I am referring to actually are reflected on the tax return and would reduce the amount of taxes due to that state, so there is not any waiting that needs to occur.

[gdshepardsr]

In the Turbo Tax KS Part Time Resident Return Allocation worksheet I showed the"Rental R.E. and Royalties allocation to KS as zero because (A) the mineral rights royalty (very small amount) and (B) the mineral rights rents (larger one time bonus) both of which were OK source income because the property is located in OK and taxes being paid to OK.  Additionally, the mineral rights rents (one time bonus) was received during the time I was a Texas residents and therefore allocated to Texas which has no state income tax.  This must have been clear enough for Turbo Tax to tell me I had successfully completed the KS return.