I just started my Georgia Return and even though TT shows me as a NON Resident it shows I have income before I enter anything. It appears it is counting my social security and retirement pension, even though I am a NON resident (never lived in Georgia or filed there before). I need to file a return to document an LLC passive rental loss. Why is this happening?
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There are two issues with out of state returns. First, you have to manually allocate your income. If you have a 1099-R for IRA or pension income, Turbotax doesn't know automatically how it should be allocated. Make sure you have manually allocated it all to your home state.
Second, many states determine your tax rate based on your total income, even though that rate is only applied to in-state income. So the state needs to consider all your income to set the rate for your in-state income.
@TomD8 is a good expert on multi-state issues.
I have resolved the issues for Georgia state TT returns using manual inputs in forms in concert with calling TT expert. Solution:
Georgia TT wrongly attributed to fed income to GA. In step by step, I entered the passive real estate loss on the TT page. I then went into GA inc/ret wks, zeroed the various income lines in Col A, and added fed amounts in Col C. In GA Sched 3 had to override the 8A value to equal 8B-8C to eliminate a TT error. (Note: 8B is Georgia income which subtracts GA income adjustments from fed AGI. 8C is the passive real estate loss I entered in the step-by-step) This manual override prevented electronic filing. TT expert concurred with doing this.
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