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Turbo Tax is saying something incorrect

Hello, I've ran into a problem. I don't understand why Turbo Tax is saying that I made money in 2018 in the state where I live when i didn't. I work in another state, so I'm confused as to why Turbo Tax is saying otherwise. I'm worried this affecting my refund.  Any help with this situation would be greatly appreciated.

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2 Replies

Turbo Tax is saying something incorrect

that is not unusual.  

 

Did you fill out tax returns in both states? TT will figure out how much you owe each state. 

 

 

IsabellaG
Employee Tax Expert

Turbo Tax is saying something incorrect

TurboTax would report the income you earned in another state on your resident state's tax return, because your home state, no matter which state it is, will tax you on all your income for the year, no matter where you earned it.

 

To help reduce double taxation, most states will give you a credit for income tax paid to another state. 

 

You should prepare your nonresident state return first, then your resident state, so that the credit will be computed properly.

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