How does Turbo tax handle state withholdings from a state that might wife worked in for maybe 5 days?

[K7baixo]

Wife took a job that required her to travel to Georgia and work 50% of the time.  In reality, she only traveled there maybe 5 days at most.  We live in Alabama where she also had income from the same company. 

I understand I need to file a non-resident Georgia return to get those GA withholdings returned but, how does that work in TurboTax?  Where do we indicate the number of days worked in GA was 5 days and I'm guessing, is well below their threshold to pay taxes?

Old and slow - please be as specific as feasible knowing how much I appreciate your help!

[Anonymous_]

If you are using an online version of TurboTax, you need to buy both the Georgia and Alabama state return packages.

If you are using a desktop (CD/Download that you install on your computer) version of TurboTax, then you probably got one free state return and need to buy the second one (either Georgia or Alabama depending on which you selected as your "free state return").

It is largely irrelevant as to how many days were worked in GA since you need to file a GA return to get your refund (i.e., income from GA may be below the threshold to file and pay taxes but you will not get a refund unless you file).

[K7baixo]

Thank you.  I’m close to understanding.  Please allow me use numbers for an example to help better my understanding:

Actual days working in Georgia:  5 days in 5 months (started new position in Aug, same employer though) 

Total wages shown for Georgia: $40,000, wages in AL:  $60,000.  Resident of AL, worked in AL every day but for the 5 days mentioned.  

How do we allocate the salary considered to be made in GA for those five days which weren’t consecutive.  Do you enter the dates in TurboTax or just the total days as 5 and it makes the calculation?   Or do we pay taxes as if she worked in GA just because the company thought she’d be there more?  

Thanks again!  I appreciate your assistance.

[JohnB5677]

In Georgia, if you are a legal resident of another state, you are not required to file a Georgia income tax return if your only activity for financial gain or profit in Georgia consists of performing services in Georgia for an employer as an employee when the compensation for services performed. 

1. does not exceed the lesser of 5% of the income received in all places during the taxable year. 
2. or $5,000.00.

GA DOR Filing Residents, Nonresidents, and Part-Year Residents - FAQ

See What are the filing requirements for a nonresident who works in Georgia and/or has other Georgia source income?

[K7baixo]

Thanks!  The issue is that her company withheld thousands as if she worked full time there and won’t reissue the W2.  My question is more regarding the mechanics.  Does TT’s GA return ask for the information at some point to calculate the $5,000 or 5% thresholds and indicate that some or all of the withholding from GA is due back to us?

Many thanks for your input!

[JohnB5677 · Accepted solution]

If you temporarily worked in a state other than your home state, you will have to prepare a tax return for both the temporary and your home state (provided they both have income tax).

In this case you will have to file the GA tax return, and one for your home state.  

• Post GA as a Non-Resident state.
• Post GA before posting your home state.
  • This is so you get credit in the home state for taxes paid in GA.
• In the GA Interview it will ask how much was earned in GA.
• Post this and you will get: 
  • the refund on your GA return, and 
  • credit for taxes paid to GA in your home state.

[K7baixo]

Thank you.  When I graduated from college, I had to file taxes in three states.  I was a resident of each for the time there and there was no Turbo Tax.  It seemed simpler then although I’m sure that with age, everything seems more complicated than in the past.

I appreciate your input.  Thank you.