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March 3, 2024
Question

Capital Gains in Wisconsin as a part time resident

  • March 3, 2024
  • 1 reply
  • 0 views

I have only been a resident of Wisconsin for 3 months of 2023. Does Turbo Tax prorate my capital gains for only 3 months or tax me on the entire amount even while I wasn't a resident?

 

Thanks!

    1 reply

    DawnC
    Employee
    March 3, 2024

    You prorate it when you file the state return.   If you entered the previous state you moved from in the My Info/Personal Info section, TurboTax will generate 2 part-year returns to file.  When you prepare the Wisconsin return, you will be asked what portion of your income belongs to WI.   How to allocate income on part-year returns

     

    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.
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