I earned income from 3 states. How can I specify how which I earned from each state?

[ae2011]

I earned income fro 3 states, VA, TN and NM. I am being taxed on my total income from New Mexico although I am not a resident and I earned only a small portion of my income from NM?

[maglib]

During the state interviews it will ask you to allocate your income.  Do the nonresident state returns first. Normally on your resident return you will get a credit for taxes paid to other states on the same income as your resident return taxes all income.  

[ae2011]

I am a resident of TX which does not have an income tax. When I did NM state tax never asked me to allocate income to each state same for VA!

[maglib]

You must go through the interview.  There is a section  Called Income Allocation. It is right after the personal info.

[ae2011]

Is it in the federal tax return or state tax return? b/c I could not find that's section!

[maglib]

state... NM it is form PIT-B,   You are claiming non-resident in those states.  In the personal Fed interview did you select that you had income from other states and choose them?

[ae2011]

yes I did but initially when went through the interview neither VA nor NM gave me the option to assign percentage of federal income to that state, I cleared everything and started over from scratch this time only VA gave me this option, but NM is still not giving me this option!!! What do I need to do?

[maglib]

I'm trying to contact a TT rep who has the NM tax return.  Input was your employer should allocate your income on the w-2 for NM. New Mexico will assess tax on any income identified as New Mexico source income on the W2. If it appears the amount of NM income your employer entered on your W2 is too high, you may want to contact your employer.  Is the NM income on your w-2 correct and is the state return using the NM portion only?  If it asks about living there at all, you do not include days there for work purposes, any temporary days are still considere at home at your personal residence.

[ae2011]

I don't have W2. I am an independent contractor. I get 1099misc. I live in TX and work in other states. The NM return did not ask me whether I lived in NM or not. It just transferred information from the federal tax return which I stated that I lived in Texas. It seems to be the NM form or the software is assuming that I was a NM resident b/c I got taxed on my entire income! When I started NM tax return it chose a "non resident status" for me based on my information but when I got to the page where I needed to assign the percentage of my income earned from NM it gives me only the option for "other income tax" which was the refund from VA's last year's return. While VA return it gave me the option for the total income and another option for the other income!!!

[maglib]

sounds like you have a mistake on your federal return.  Possibly the personal info area or When you entered your 1099-misc and did the self employment section. The return is thinking all your SE income is NM when it is only one 1099Misc.  when you entered the 1099Misc did you enter state information (my form has more than boxes 1-18? where you enter the state info).

[ae2011]

No mistake on federal return. I tried all both ways although my 1099 misc did not specify the state income tax. Besides, on VA return I have the option of entering the percentage of my income which belongs to VA! it sounds like NM return has some issues in turbo tax!

[maglib]

try to go to personal info section in fed and remove NM as a place you worked, delete the NM return.  Then try to see if you can do NM return.  There is a allocation of income form in NM, for some reason it's stuck on thinking you are a resident.  If that doesn't work. If that doesn't work, you will need to contact TT support. <a rel="nofollow" target="_blank" href="https://support.turbotax.intuit.com/contact/">https://support.turbotax.intuit.com/contact/</a> type New Mexico state Self Employment allocation in the help section.

[gretchhub]

NM like CA do a total income approach and then allocate to get the NM %.  It allows them to bump up your tax rate into a higher bracket.  In some cases it can make you get less back in the tax credit paid to another state than what you actually paid.  IMHO that is double taxation in that case and unconstitutional but that is my personal rant.  Most cases you get all the tax paid to one state as a credit against your resident state.  States like CA with high rates that do this basically steal from other states because it winds up being more that you would have paid if you earned it in your state.  So states like NY don't give you a credit beyond what the NY tax would be (because NY does not feel like paying CA) and so the taxpayer gets double taxed.  No one protects the small guy.