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billbeeark
New Member

How do I get the income generated in other states to report correctly. I worked 3 states but TT reports my total income in all three and not just the income from that st

My federal taxable income is around 86k, of this I made 13.2k in MT and 11.7k in NC.  The rest was in AR.  However, TT reports all the 86 for all three states.  How can I get this to adjust and report only the income from each state for that return.
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Accepted Solutions
SteamTrain
Level 15

How do I get the income generated in other states to report correctly. I worked 3 states but TT reports my total income in all three and not just the income from that st

Ignore the states until you have the Federal completely done...every scrap of income and every deduction/credit...and the error check needs to be clean before you head into the states.......

_____________________________________________________________

Probably you need to do that income-divvying-up during the income allocation phase during each state's interview.  

You have to run thru each state's interview to indicate exactly how much was earned in each state.  And for the state that is your "resident" state....it will be all included anyhow....but, after your home state calculates a tax,  you will be able to take a credit for the taxes you paid to the "other" states.

For the "other" nonresident states, they will use your total income to set your tax rate, but will chop it down to what % of the total was actually earned in-state after you go thru the interview "allocation" of income.

Example: IF NC was one of your non-resident states, it will include your total yearly income down to line 12 of the Form D-400...then line 13 is the decimal fraction of your gross income earned in NC that gives the line 14 taxable income that is finally taxed by NC.    Other nonresident states sometimes calculate a tax on your total income first, but then chop down the tax based on what fraction of your total was earned in that state.

______________________

But you have to run thru each state's interview to get the allocations correct.  Plan to spend a couple weeks on it..print out, check the numbers...go back and correct the allocations..print out..and repeat until it's right.

And it must be done in order:  1) Federal, 2) nonresident states 3) resident state.  You can't do the resident state until the nonresident states have been fully filled in properly.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

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1 Reply
SteamTrain
Level 15

How do I get the income generated in other states to report correctly. I worked 3 states but TT reports my total income in all three and not just the income from that st

Ignore the states until you have the Federal completely done...every scrap of income and every deduction/credit...and the error check needs to be clean before you head into the states.......

_____________________________________________________________

Probably you need to do that income-divvying-up during the income allocation phase during each state's interview.  

You have to run thru each state's interview to indicate exactly how much was earned in each state.  And for the state that is your "resident" state....it will be all included anyhow....but, after your home state calculates a tax,  you will be able to take a credit for the taxes you paid to the "other" states.

For the "other" nonresident states, they will use your total income to set your tax rate, but will chop it down to what % of the total was actually earned in-state after you go thru the interview "allocation" of income.

Example: IF NC was one of your non-resident states, it will include your total yearly income down to line 12 of the Form D-400...then line 13 is the decimal fraction of your gross income earned in NC that gives the line 14 taxable income that is finally taxed by NC.    Other nonresident states sometimes calculate a tax on your total income first, but then chop down the tax based on what fraction of your total was earned in that state.

______________________

But you have to run thru each state's interview to get the allocations correct.  Plan to spend a couple weeks on it..print out, check the numbers...go back and correct the allocations..print out..and repeat until it's right.

And it must be done in order:  1) Federal, 2) nonresident states 3) resident state.  You can't do the resident state until the nonresident states have been fully filled in properly.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
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