Part-Year Resident Income Allocations Issue

[mcco-ac]

I am filling in the NC Part-Year Wage Allocation and having an issue. I am attempting to change the income reported on the W2 to show part as PY NC Source Income and another line with NOT NC Source Income but whenever I click continue and go back the amount has changed back to the full amount. This is also causing an issue with my second Part Year state as that is not pulling in ANY W2 income when it should be showing the remaining part-year income from the W2 income. Please let me know what I am doing wrong to fix this issue.

Thanks!

[MaryK4]

TurboTax pulls the North Carolina income information from the W2 as default.  You can make the needed changes on the Part Year Income Allocation screen (see below).  

There should be a similar screen in the other state Part-Year return.

[mcco-ac]

Yeah i see that screen but for some reason it doesnt put the W2 on there it only shows my other income options on the part year allocation. Should I be putting something specific on the wage allocation page in order for it to show up on the part year allocation page?

[mcco-ac]

What do I need to change in order for the Wages, Salaries ect... to show up on the Part-Year Resident Income Allocations page? My K1 is showing but my W2 does not? I have tried every option on the Wage Allocation Page (attached) but none of the Status options allow it to show on the next page (Part-Year Resident Income Allocations). Please Help!

[MarilynG1]

What does the State Info (Boxes 15-20) show on your W-2?

If the income is shown correctly for North Carolina on your W-2, you don't need to Allocate.  Only the income that is not specifically broken down by state on your input document needs to be Allocated.

Here's more info on Allocating Income as a Part-Year Resident that may help you. 

[mcco-ac]

I am allocating the state income. The issue I am having is that I am unable to allocate the state income from my W2 on both state returns. The W2 doesnt even show up at all in my second state part-year return and only shows the screen I attached in the first state. I cant not figure out what settings I need to input in order for the W2 income to show on the second state so I can allocate part of that income there as well.

[DMarkM1]

It appears in your scenario, your form W2 has all box 1 wages listed in box 16 for NC and taxes withheld showing in box 17 for NC and no other state lines.   If that is the case you can do the allocation on the form W2 (see below).  

First, be sure you need to allocate.  For example if you worked in NC all year and just changed resident states then all the income on that W2 would be NC source income.  You would make two lines on the page you posted.  One with part of the income as PY NC source and the other as  NR NC Sourced. 

 NOTE:  Wage allocation for NC is only on that page it will not show up on the next screen.  

In that case none of the income will transfer to the second state interview, but you will have the opportunity to add the income earned in NC while you were resident in the new state as part of the allocation interview for that state.  

You will then later in the interview claim a credit on that state return for taxes paid to NC on that part of your income. 

If you truly do need to allocate because you no longer physically worked in NC then follow the next steps.  

1. In box 16 for the NC line on your form W2 put in the amount that should be allocated to NC.  
2. Next add a state line for your second state.  
3. Use the federal ID number with no dashes/spaces for the state ID number. 
4. Put in the wages that should be allocated to that  state.  
5. The total of boxes 16 should equal box 1. 
6. There will be no taxes withheld for that state since it didn't exist before.
7. Be sure to submit a state withholding form to your employer for your new state so that the withholding is for the proper state going forward.

[Alaw]

This doesn't work for NC it will go right back 

[AmyC]

If you imported the W2, delete it and enter by hand the correct state allocations.