Hello
TT is calculating I owe 2021 taxes in a state that was only for mailing address but I did not live in and was not a resident at the time I received income.
The W-2 has the mailing address (Montana) but does not show any state in box 15 and 16. The W-2 shows SUI from the state I was resident (Alaska), which is not subject to state tax, at the time of income distribution.
Couple of points
1) the W-2 is for a gross up distribution for 2020 taxes.
2) I did move to the mailing address state in 2021 due to being laid off 2020. As such, I will file a state return for any income received after becoming a resident of Montana.
3) I have full documentation of Alaska residency in 2020 (including SUI withholding on W-2) and when residency was established in Montana in 2020.
The question is should I file federal and state separate from one another in TT or can I remove the W-2 wages from the Montana state calculation before filing through TT?
Thank you
Many folks have to file a tax return in a state they never lived in, because they received income from a source in that state.
Since you did live in Montana for awhile, file a Part-Year Resident Return there.
You don't need to make any adjustments to your W-2 entry. In the Montana interview, you will be able to indicate which wages belong to that state.
Most states start with your Federal Gross Income, then ask you for the amount that belongs to their state (or to remove the amount that does not belong to their state).
Click this link for info on Allocating Income as a Part-Year Resident.