Filing state taxes in 2 states

[thehorntoad1]

Situation: Worked in California until May 2023. Moved to Kansas in June 2023. Did not earn any taxable income in Kansas, but I did take out a distribution (if that is the correct lingo?) I took out a withdrawal on my 401K to live on--and yes, after 59-1/2 years, and yes, taxes were withheld.  

This would be an UNEARNED income. Not sure why Kansas state form wants to tax my federal earnings in California, in addition to this Unearned income, which was already taxed.

Thank you for your help--

----Paul

[Opus 17]

You need to prepare a part-year CA resident return and a part-year KS return, not a full year KS resident return.  You also need to manually allocate your income between the states, because turbotax may not be able to do it correctly automatically.  Lastly, KS may be basing its tax rates on your total income, even though only the distribution is actually being taxed.  This is common with most state income taxes. 

[DawnC]

You need to file 2 part-year state tax returns for 2023, since you moved and lived in 2 states during the tax year.    Basically, you need to set up your move dates in the personal section so that TurboTax knows what type of returns to generate.    TurboTax will follow state tax law when preparing your returns.   

How to enter your move dates in TurboTax

Allocating your income shouldn’t be too difficult, but it can involve some math.   Click on the link for examples.   You'll need to determine if the income you're allocating is earned or unearned, as these are handled differently:

• Earned income comes from employment, such as wages, salaries, tips, payment for services, and commissions and is allocated to the state you were physically in when you earned it.
• Unearned income comes from non-employment sources, such as interest, dividends, capital gains, social security, and IRA distributions and is allocated to your resident state.

You can also select the scenario below that applies to you to learn more:

You moved to a different state and started working there after moving

You started working in a different state; later in the year, you moved to that state

You and your spouse moved to a new state; one works there, the other still works in the old state

You moved to (or from) a state that you didn't work in

[thehorntoad1]

thank you so much for responding. Your post is very helpful to me. You are correct that it automatically assessed. Call my earnings in California as well as Kansas play My question is how do I manually input the part time in each state?

Thank you

[MarilynG1]

In the MY INFO section, you are asked what states you lived in during 2023.

In the individual state interviews, you may also be asked your 'move in-move out' dates (near the beginning of the interview). 

@thehorntoad1