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Level 3
March 5, 2020
Question

I have a client who moved from NC to VA; neither State return is picking up the income as taxable Dates of residence have been entered in each Part-Yr/Nonres. screen?

  • March 5, 2020
  • 3 replies
  • 19 views
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3 replies

sjrcpa
Level 15
March 5, 2020

You have to assign each income item to each state or states.

The more I know the more I don’t know.
itonewbie
Level 15
March 5, 2020

As Susan says, you need to input the amounts taxable by the respective states.  PTO wouldn't otherwise know how much income your client had from each source while resident in each of the states.  Just like you wouldn't know unless your client tells you, so, now, you need to tell PTO what to do.

Check out these articles for instructions on how to prepare multi-state returns in PTO.  The second article is a bit dated but it is still a good reference.

https://proconnect.intuit.com/community/help-articles/help/how-to-create-a-multi-state-return/00/4715

https://proconnect.intuit.com/taxprocenter/practice-management/handling-multi-state-returns-in-proconnect-tax-online/

---------------------------------------------------------------------------------Still an AllStar
AnneLAuthor
Level 3
March 5, 2020

Thank you both for your replies.
I'm not sure the coding of the income is the issue.
The income was actually earned in NY.
It is only taxable in NC and VA as resident states.
As a full year resident of NC in previous years, the income was recognized and taxed and the credit for taxes paid to NY was calculated.

I also recently prepared a return for someone who moved from NY to SC and the income was allocated appropriately based on dates of residence, but the SC input/residency questions were different in the program than they are for NC and VA.

itonewbie
Level 15
March 5, 2020

If you are clear about the residency and residency period, coding is always the issue.

Given the additional information you shared, one big question that hangs over this is whether your client was telecommuting with a NY employer.  If so, this could create double tax exposure in some states.

---------------------------------------------------------------------------------Still an AllStar