Question

Allocating unearned income between Virginia and Florida

Forum|Forum|4 years ago
March 29, 2022
1 reply
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We moved from Virginia to Florida 6/9/21 upon retiring. I am confused how to allocate income between states.

All earned income is Virginia (we retired!) however there is quite a bit of unearned income from dividends, interest, capital gains that I am not sure how to allocate. If I use the earned income percentage, it would be 100% Virginia which is not accurate for unearned and would have us owing much more as Florida is tax free.

Can I allocate 50% to each state (since we moved in June) for unearned income or will I have to find out actual dates earned and separate accordingly?

Thanks!

M

MayaD

Allocate the unearned income to the state you were a resident of when you received it.

For example, 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.