Question

Moved from MA to AZ mid 2020, do I get taxed capital gain from both states?

Forum|Forum|5 years ago
April 20, 2021
1 reply
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Hello,

I sold some stock in 2020 right after I moved to AZ, and ended up with a long term capital gain. When I enter MA info in TT it automatically shows 12% tax of the gains, and when I do AZ, it also taxes me. Should I get taxed from both states deapite selling stock while living in new state (AZ)? Is there some allocation that I need to do?

Not A Product Question

E

ErnieS0

Yes. Make an allocation in the Massachusetts section of TurboTax. Capital gains are taxable to the state you are lived in when you sold the stock. If you sold stocks while an Arizona resident, the sale is taxable to Arizona but not to Massachusetts.

In Massachusetts, go to Capital Gains and Losses Summary, Edit each transaction and check the box "Non-Massachusetts Source."

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S

Snowy_DesertAuthor

Thank you! - another question, what about the dividends and interest income? I have like a combined $95 of both, I lived in MA till end of May and moved to AZ early June. Do I allocate or split the $95 into both states or would it be alright if I just put the whole amount as AZ or MA's?

DawnC

Employee

Dividends and Interest are unearned income. See the last example below. Allocating unearned income is pretty straightforward: just allocate it to the state you were a resident of when you received it. Here are some examples:

You received three quarterly dividend payments while living in Arkansas, and the remaining dividend while living in Oklahoma. Allocate the first three payments to Arkansas and the last payment to Oklahoma.
You sold some stocks right after you moved to Iowa. Allocate the gain to Iowa.
You closed an interest-bearing account while still living in California, so you'd allocate 100% of the interest to California.
- On the other hand, if the account remains open, you'd allocate the interest you earned as California resident to California, and the remainder to your new state. An easy allocation method is to divide the year's interest by 12, and then multiply the figure by the number of months you lived in each state.

How do I allocate (split) income for a part-year state return?

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