michael[at]vfrworld.com wrote:

- quote -

Was all of this salary from the same employer? If so, the
earnings pre- and post-move should be shown as AZ and CA
source respectively at the bottom of the W-2, along with the
amount withheld for each state. If two employers were
involved, each would have entered the state taxable income
and the amount withheld for the state in the same area on
the W-2.

Turbo Tax provides space to enter the amount that is
attributed to each state on the W-2 on the screen on which
you enter W-2 information. Each state can tax only the
amount of income that was earned in that state, or while a
resident of that state.

Katie in San Diego

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When you enter your W-2s into TurboTax, you have to
designate which state the money was earned in (you did do
this, didn't you) under state earnings. Then when you
allocate income for each state tax return, it should
apportion it correctly. Interest and dividend income is
likely split 50/50, but you should also be able to allocate
this differently if you need to.

Dennis

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<michael[at]vfrworld.com> wrote:

- quote -

It sounds like GIGO, but it's hard to tell for sure from the
information provided. Isn't there an allocation form in
there somewhere on which you indicate what income is
attributable to what state?

--
Phil Marti
Clarksburg, MD

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

I'm using TurboTax. I lived in Arizona for the first half
of 2005, and then moved to California for the second half.
The move was job-related, and resulted in a significant
salary increase. When I plug this information into
TurboTax, the way it's being calculated is to take my entire
2005 income, and divide it by 50%, and applies that amount
as my taxable income for Arizona. However, with the salary
increase, the portion of income earned in Arizona was more
like 30%.

Can anyone tell me how this is supposed to be calculated?

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >