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siems-reed
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
DanielV01
Expert Alumni

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.

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siems-reed
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!
DanielV01
Expert Alumni

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.
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**Mark the post that answers your question by clicking on "Mark as Best Answer"
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