Should it be able to break out the IA wages and CO wages correctly on the state filings? My son moved and the CO wages he earned are being considered on the IA filing.
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest second stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
New Member

Should it be able to break out the IA wages and CO wages correctly on the state filings? My son moved and the CO wages he earned are being considered on the IA filing.

 
3 Replies
Employee Tax Expert

Should it be able to break out the IA wages and CO wages correctly on the state filings? My son moved and the CO wages he earned are being considered on the IA filing.

A number of states use this method for determining part-year or nonresident tax.  They pretend that all of the income is taxable in the state, calculate hypothetical tax on that amount, and then prorate the tax to the percentage of income actually earned and taxable to the state.  Although out-of-state income is not taxed there, it can look like it is because of how it appears on the tax return.  This is what is happening here.  Iowa is not taxing your son's income, but they do factor it in to determine Iowa tax to pay on that income.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
New Member

Should it be able to break out the IA wages and CO wages correctly on the state filings? My son moved and the CO wages he earned are being considered on the IA filing.

Thank you!
Employee Tax Expert

Should it be able to break out the IA wages and CO wages correctly on the state filings? My son moved and the CO wages he earned are being considered on the IA filing.

You are welcome.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Dynamic Ads
v
Privacy Settings