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March 4, 2023
Question

How to file for 2 different states/jobs since I moved? I followed the general directions, but it's including my total yearly income as taxable for 1 state.

  • March 4, 2023
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KrisD15
March 4, 2023

File the state for the older address first, (the state you moved from) then the state you moved to.

 

Every state is just a bit different, but if you file as a part-year resident in two states, and you worked in two different states, the income taxed on that state return should only be the income earned in that state. 

 

If you worked in State 1 all year and moved from state 1 to state 2, state 1 might tax all your income since it was earned in state 1. In this case, state 2 will also have you claim the portion of income earned while living in state 2 (but working in state 1) HOWEVER state 2 will give you a credit, for the tax you paid to state 1, on that portion so that you are not taxed twice. 

 

For some states, TurboTax asks you to allocate your income when you start the state return. 

Some states start with the Federal Adjusted Gross Income and then subtracts the income not earned in that state. 

 

If you move from one state to another and the states have a "reciprocal agreement", you should have asked the employer to change the state withholding. 

 

If you did allocate the income properly between the state returns, and there is no tax credit on either state return (for the tax paid to the other state) please continue this thread and give us more information such as the two states involved, which is state 1 and which is sate 2 as well as the order in which you did them in the TurboTax program. 

 

 

 

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jlbaier2Author
March 5, 2023

Thanks for your answer.

I moved from Missouri to Iowa in March, starting a new job in Iowa once I moved. I indicated the move date in my profile. I completed the federal return with the 2 separate W-2's from both states. Then on the state return I did Missouri first, then Iowa and filed as part-time resident for both. The problem is that it appears to have taxed my full year's salary when calculating my Missouri taxes. Not sure if that helps to further explain? Thanks

KrisD15
March 5, 2023

Yes, thank you.

According to the state of Missouri:

 

"Regardless of where your income was earned or if you are using Form MO-CR or Form MO-NRI, you must begin the Missouri return with your federal adjusted gross income, as reported on your federal return. Next, apply all allowable deductions and compute the tax on all of your income. The tax is then reduced by either the Missouri resident credit (Form MO-CR) or the Missouri income percentage (Form MO-NRI). The result for nonresidents is a prorated Missouri income tax based only on the income earned in Missouri. The result for part-year residents is a prorated income tax based only on the income earned while a Missouri resident."

 

Please return to the Missouri return in TurboTax

Select 

Part-Year Resident Filing as a Nonresident

On the next screen select

Part-Year Missouri Resident 

Next you have to go through quite a few screens and end up with the Income Allocations screen

The TurboTax should have this already allocated properly, but if not, you can adjust here. 

You only report your MO income

 

 

 

 

 

 

 

 

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