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Two different businesses in two different states; new business with move in 2022

First, desktop asks me if all my info was still correct for my old CA returns.  I moved in 2022 to new state and then started a new biz here, this year (different from other).  So I updated that first query and it kicked me from the CA return to the new state (LA).  But I still returned to CA and received self-employment income with the original biz in 2022, and ADDED new income from new state/NEW biz.  Can anyone suggest ahead of time how to handle this before I get bogged down?  Not wanting to show double income for each state of course, and don't want Turbo to automatically populate incorrect info for second biz.

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3 Replies
ThomasM125
Expert Alumni

Two different businesses in two different states; new business with move in 2022

You need to set up a new business in the federal section of TurboTax, separate from the one you have from last year. There is no way in the federal section of TurboTax to indicate what state the businesses income belongs in. You will do that when you go through the state tax returns.

 

You will file part-year resident tax returns in both states. Look for an option for a credit for taxes paid to another state on your resident state tax return. That option will prevent you from being double taxed on income taxed by both states. Since it appears California is now your non-resident state, do that return first to help with the credit for taxes paid to another state.

 

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Two different businesses in two different states; new business with move in 2022

I am having a hard time knowing just how to start the process.  Turbotax begins by asking the question if my personal info is still correct.  It is NOT, since I moved in 2022.  So it automatically puts everything in my new state.  How do I toggle or correct for starting my non-resident state first?  This does not feel intuitive.  

JunkoMa
New Member

Two different businesses in two different states; new business with move in 2022

What ThomasM125 states is correct. I am not an expert like ThomasM125, but when you start answering the questions, it will ask you if you moved or if you had income from any other state besides where you lived in 2021. Once you do, what you see up top should show 2 states you lived in. But what it might show when you click on it is not the final amount because you have not finished yet. So do not pay attention to the State it is showing up top. Just follow all the questionnaires till the end of Federal Return. Then once Federal is done, you can pick for which state you had income from. Once you finish CA, then you will add the return for the new state you moved to. 

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