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April 13, 2023
Question

I lived in two states in 2022. Why is my MN Taxable Income shown as $20K higher on my taxes & credits summary than the portion of income allocated to MN on my W-2?

  • April 13, 2023
  • 1 reply
  • 0 views
I lived in MN the first half of 2022 and moved to IL at the end of July. On my W-2 it shows ~$45K allocated to MN and ~$35K allocated to IL, the sum of the two numbers is equal to my total income for the year. When filing my MN tax return I was alarmed to find I owed ~$2K to MN since I had owed less than $100 the previous year. Upon reviewing the steps in TurboTax, I noticed that on the "Taxes and Credits Summary" page my MN Taxable Income was listed as ~$65K. This is ~85% of my income despite only living/working in MN for ~60% of the year. Is this possible/correct?

1 reply

LindaS5247
April 13, 2023

When entering your state tax returns, when multiple states are involved, you should enter your nonresidential state tax return first (MN).

 

Then enter your residential state tax return (IL).

 

It is important that you prepare your nonresident state first, because your resident state will provide you a credit for the tax you pay to the nonresident state.  By preparing the nonresident state first, TurboTax can transfer the credit information to your resident state to return. 

 

Did you do it this way?  Here are some additional articles with guidance on multiple state tax returns.

 

Click here for additional information regarding apportionment of income in multiple states.

 

Click here for additional information on filing multiple state returns.

 

Click here for information regarding filing multiple states returns.

 

Click here for how to delete your state return in TurboTax desktop.

 

Click here for how to delete your state tax return in TurboTax Online

 

If this does not help please feel free to come back to TurboTax Community with additional details or questions or click here for information on Turbo Tax Support.  You can connect with a Live TurboTax Agent and share your screen.

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