Can you please tell me where this amount ($209) is coming from into the Arizona form 309?

[almargahi]

I looked everywhere in the federal forms and was never able to see this $209 amount, none of my capital gains equal to this amount. Whenever I delete the whole form 309, I start again and it errors out asking me to fill out the sections in red. All I need to do is report the part of RSU income from MA when I used to live there, but it keeps populating this "CAPITAL GAINS" in there. Please help! 

[HelenC12]

It may be coming form a Form 1099-DIV box 2a, Total capital gain distribution. 

[almargahi]

No it is not. Like I said I looked in all the forms. I also just looked again in my 1099-DIV forms and the total does not come close to $209..

[MarilynG]

Since we can't see your return in this forum, the $309 Capital Gains could be coming from your Massachusetts return.  If not, look at Schedule D in your Federal return to see if a Capital Gain is reported there (from selling an investment). 

On Arizona Form 309, enter $0 in Column 3 if none of this income belongs to Arizona and it won't be added to your Part-Year Resident return for Arizona.

Incidentally, if you want to designate part of the $13,207 RSU Income to Arizona, you need to enter that amount in Column 3.  The screenshot currently shows the entire amount being reported to Massachusetts. 

Click this link for more info on Allocating Income as a Part-Year Resident and how to file a Part-Year Resident Return.  

[almargahi]

Hi @MarilynG - Thanks. Just to clarify, I am 100% AZ resident, but I was granted RSUs when I lived in MA in 2019, then I moved to AZ mid-year 2020 and I am an AZ resident since, and I continue paying taxes to MA, it falls off year by year as my RSUs vest. 

That said, in my schedule D, I do not see anything about $209, like I said I looked in every form, literally every form in TT and in my tax forms (1099s), and nothing about this. I deleted AZ and started again and it populated one more time labeled as "CAPITAL GAINS" as shown in my screenshot. 

Help me out here, when I got the separate W-2 for MA with $13207 in box 16 (See my new screenshot, I am not sure where the $642 and the $13,646 are coming from, I put new amounts I saw in the MA W-2), isn't that the only amount that should show in form 309? Why is it showing capital gains in the first place? The question before this asks if the amounts are different, and I put what I see in MA's box 16 not what TT populated. I honestly think there are bugs in this year's TT - I have been using it for 9 years and every year I file I understand every step and every form, except for this year.

[MarilynG]

Since you've been an Arizona resident since mid-2020, you don't need to file a Massachusetts return anytime after that.  Your RSU vesting income reported on your W-2 actually belongs to Arizona since then.  However, if your W-2 reports MA Income and MA Tax, you do need to file a Non-Resident state return there.  You could ask your employer to withhold AZ tax going forward, or withhold no State Tax on your W-2's reporting vesting income only. 

The Capital Gains may have come from the RSU vesting interview, if you completed that.  You don't need to; just enter your W-2.  TurboTax may have calculated your vesting income somewhat differently than what is reported on your W-2, which could account for the differences in Column A and B on your screenshot (and possibly the capital gains entry also). 

You could try deleting both MA and AZ (and your entries in the RSU Vesting interview),  then close TurboTax, clear your Cache and Cookies, prepare MA again, then AZ.

When you actually sell your shares and receive a 1099-B, just enter it like a regular 1099-B (adjusting for the correct Cost Basis), and say NO to 'employee stock'.   Hope this helps!