Work is split between 2 states

[ctmatx]

Hi, I have a W-2 for each state but TurboTax is changing the state-specific W-2 figures

[ctmatx]

Specifically, it's approx 70% of the pay in MA and 30% in RI

[MaryK4]

In general, nonresidents pay tax to the state where they worked, residents have to report and pay taxes on all income regardless of where it is earned.  In addition, some states require you to compute the state income tax regardless of where it is earned and applies the tax only to the state income.

[ctmatx]

Ok, so I'm filing a state return for both MA & RI. Wages have been allocated between two states. So I have 2 W-2’s.

For RI State, I’m entering the portion of wages that is in box 16, but at the end of the RI State taxes on TurboTax, my Rhode Island Taxable Income is inflated much higher than box 16.

[MaryK4]

@ctmatx Yes, that is not normal.  I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Online:

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen.
3. A drop-down will appear. Select Tools
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.
4. Please provide the Token Number (including the dash) that was generated in the response.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)

[ctmatx]

Thank you! Token is 1298259

[MaryK4]

Here is the NR Schedule II which shows the income percentage that is applied.  There was that $600 RI adjustment (they allow you to deduct the 529 contribution if you are a nonresident, so your calculation may have been off by that).  If you have other questions, please ask! @ctmatx 

[ctmatx]

Thank you very much. I agree with that worksheet. The problem is on the TurboTax screen at the end of my non-resident Rhode Island state return. The RI Taxable Income is showing a figure close to the Column B figure but I believe the RI Taxable Income should be the Column A figure. (which matches the RI wages allocated on the W-2.) Should I be completing that screen that asks for Days Worked Outside Rhode Island ?

[MaryK4]

No, you do not want to do the section on workdays because your W2 already allocates the Rhode Island income.  I did notice the error that you have the 2nd W2 with just the RI income- you can add the Line 15-16-17 to the main W2 so that you can e-file.  I am not seeing the summary screen that shows another amount, if you can grab a screen shot it may help because I am showing they are using the 31.83/63266 (as on the W2). @ctmatx 

[ctmatx]

[ctmatx]

@MaryK4  Hi, on the Fed return, I added a RI Line for 15-16-17 to the first W2 and deleted the 2nd W2. Thank you for that! Any ideas on the screenshot I provided? I appreciate all of your help today but I believe the company only has this scheduled for another 30 min.

Thanks!

[MaryK4]

We will be here even after the time so no worries if you have questions later.  The screen you show has the Rhode Island taxable income computed "as if if" you were a full year resident so if you were a RI resident, you would pay the $2214, but they apply the .3183 (percentage of RI income to total federal income) which is calculated BEFORE the subtractions, deductions and exemptions applied.  You have to think of it was two separate calculations, if that helps- of course if it does not, please let me know and I can try to provide an example!  @ctmatx 

[ctmatx]

@MaryK4 Thank you for your time today. You've been a tremendous help!

I did some additional work on both state returns and I believe I have them both in a good place now.

You are the best. Thank you again!