Other Income from State I worked in but did not receive grants from

Forum|Forum|2 years ago
February 7, 2024
1 reply
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My first post was a bit messy, apologies for that, but I think I figured it out. I attended community NM college in 2022 and 23. I live in NM. I worked in CO. Now I got grant money to attend school the years I was at college. When filing for my taxes, I am being told to report "other income" from CO, and the Federal amount indicated is the exact amount left over from the grant I received last year after paying for tuition. Why is Turbotax saying I need to report other income for CO when the grant was from NM, I attended school in NM and I live in NM. All of my work-related W-2s from CO I already filed and had no issues with... and yet it keeps telling me I have other income in CO that equates to the NM grant. Explain to me why that is? When I filed in 2022 I did not have this problem. That is where all my confusion is stemming from.

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DaveF1006

When you begin your state taxes, prepare your Colorado state non-resident return first. Then prepare your NM resident return last. As you prepare your Colorado return, There will be an income allocation screen for your wages and the grant money. You would allocate your entire wage income to Colorado but none of your grant money. You would indicate this by putting a 0.

After both states are complete, you should receive a credit in your NM return for the taxes paid to Colorado. Here is what the Colorado allocation screens should look like.

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JustaAverageJoeAuthor

I tried that. No dice. I think I might have found the mistake I made back in the Federal side, so I am going to try something to see if it works. Before I do that, answer me this: would the leftover grant from NM be put under New Mexico Modified Gross Income?

JustaAverageJoeAuthor

Oh and another thing, what about "credit for taxes paid to other states"? I could put Colorado there, because did I not pay taxes for two states, ergo NM and CO, when I got my income from CO? Thoughts?