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Level 1
April 4, 2026
Question

Multi state allocation - Alabama and Washington

  • April 4, 2026
  • 3 replies
  • 12 views

I've read all of the help articles and even though my client was a resident of Alabama for only 3 months, all of his federal income is being allocated to Alabama.  The return is multi-state, he's marked part year resident, and I have two line items for W-2 income.  US income is $79,550 (earned in WA) and $38,634 is listed for Alabama.  But Alabama is showing up in the return as the total.  

I'm at a loss!

 

 

3 replies

George4Tacks
Level 15
April 4, 2026

Since there is no return due for WA. Use US instead of WA for the allocation.  In profile, DO NOT have WA as a state. 

In  Client Information - Resident as of 12\31 is US

no check mark for Full Year Resident

check mark for Multi-State Return

Split W2 with US and AB

 

NOTE: maybe WA if low income and qualified for the Working Families Tax Credit

Answers are easy. Questions are hard!
qbteachmt
Level 15
April 4, 2026

Have you looked up the AL rules? Some states tax the income based on all income no matter where earned, and then give credit for taxes paid elsewhere, and this is what AL does, based on a web search. Other states have you report only the allocated income.

Don't yell at us; we're volunteers
Level 2
April 7, 2026

I have the same problem. Alabama is not being prorated. I was told there would be an update to correct program but there has not been

Moderator
April 8, 2026

Hi @LAJohnson  Are you generating any diagnostics? You can take a look at this one that has a workaround.  Even though it says Lacerte, the workaround should be the same for ProConnect.  Except instead of on screen 10, you will find it here: Input Return>Income> Wages, Salaries, Tips (W-2)

 

If you need additional assistance, we recommend that you contact ProConnect Support so we can take a closer look.