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Returning Member
posted Apr 12, 2020 1:12:14 PM

Allocating IRA deductions when filing multiple states

I am filing for IN and IL and would like to allocate my IRA deductions. I can't find any options in TurboTax to allocate the IRA deductions; instead, TurboTax automatically allocated my deductions. The automatic deduction from TurboTax is incorrect, and I would like to know how I can change the allocations.

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2 Replies
Level 15
Apr 12, 2020 6:38:40 PM

What do you mean "allocate"?

Returning Member
Apr 13, 2020 6:59:37 PM

When I worked for job A in IN, I only contributed $100 in traditional IRA, and contributed the rest of $5900 when I worked for job B in IL. Right now, I am not seeing a $100 deduction in my IN income, instead, I am seeing close to a $1000 deduction (TurboTax somehow automatically allocated $1000 IRA deduction towards IN and $5000 towards IL). Due to other deductions in IN return, my final number for IN return remains the same for both a $100 or $1000 deduction. However, for my IL return, I can get an extra $50 if I can "allocate" the entire $5900 deduction for IL income. According to another post, https://ttlc.intuit.com/community/retirement/discussion/ira-deduction-multiple-states/00/390059 , it makes more sense to allocate my IRA deductions to the state based on where I was a resident of when the IRA contribution was made.