Which State returns given I worked in one State and lived in 2 others

[Neta160]

Hi,

In 2020, I worked all year in Massachusetts and I lived in Rhode Island from January 1 to June 5 and then Connecticut from June 6 to December 31.  From my W2 I can see that I paid income Taxes in Massachusetts.

What type of State returns do I need?

Also, are the proceeds and costs associated with selling my Rhode Island home and buying a Connecticut home going to be accounted for on my Federal return and flow through to my RI and CT returns?

Best,

Tim

[DawnC]

Yes, the sale of your Rhode Island home will be reported on your federal return and will transfer to your state returns.   Since you worked all year in Massachusetts, you will need to file a nonresident return for MA.   Prepare this return first (after federal) so that you get credit for any taxes paid to MA on your resident returns.   Instructions are in the link.  

Since you moved during 2020, you will complete 2 part-year resident returns, one for Rhode Island and one for Connecticut.   Since the property sold was in Rhode Island, it will be reported on the RI part-year return.   For more information on allocating your income between resident states, please see the link below.  

Where do I enter the sale of my home and is it taxable?

How do I allocate (split) income for a part-year state return?

[Neta160]

Thank you Dawn.  Your response was very clear and I appreciate the links to obtain more detail.

Best,

Tim

[Neta160]

Hi Dawn,

I was able to follow your guidance and create a MA non-resident return, then a partial RI return, and finally a partial CT return.  However, while creating the RI and CT state returns I was asked some questions that I made assumptions about.  I want to confirm these assumptions.  I was not able to find help in TT for the fields that TT was asking me to complete.

Partial RI return:

1) TT asked for the income.  I assumed TT meant Box 1 or 16 (same amounts) on my W2.  Was this correct?

2) TT asked for the MA tax.  I assumed TT meant Box 17 on my W2.  Was this correct?

3) TT asked for the Adjusted Gross Income from my MA NR return.   I tried to find the AGI on my MA return but TT wouldn't let me see the return.  I don't know why.  I decided to use W2 Box 1 or 16 again.  Did I use the wrong figure?

TT said m RI return had no payment or refund due.  This seemed reasonable.

Partial CT return:

TT asked basically the same questions as my RI return so please confirm if I complete the CT return the same way.  TT said I had a $3 refund for CT.

One new question.  I had property damage from the hurricane last August.  I put in an amount and completed my Federal and State returns.  Then I realized that I made a mistake and increased the amount of the loss on my Federal return but nothing changed on any of the returns.  Is there a max amount for damage that is limiting the deduction?

Best,

Tim

[Cynthiad66]

s part of tax reform relief for those affected by natural disasters, you can now deduct your total loss (minus $500 and any amount covered by insurance) along with your usual Standard Deduction, whether you amend 2019 (see below) or file as usual for tax year 2020. This means you’ll be able to claim everything you lost over $500 without having to itemize deductions on your taxes.

Your MA  AGI should be computed based on the return information automatically.  But you can verify it by viewing your return.  Go into Tax Tools, Print Center then view your returns.

For all of the returns, if you follow the prompts you will be okay.

I Live in a Federally Declared Disaster Area