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HI all,
I have a federal capital gain that is automatically flowing to a Pennsylvania nonresident and it shouldn't be. Pennsylvania does not have a nonresident tax return. Instead you have to exclude income from even flowing to the PA tax return if it is not taxable to PA.
So there should be a way on the federal input sheets to exclude a federal capital gain from auto flowing to the PA state return. Interestingly, the interest and dividends are auto excluded (correctly so).
Thanks for any suggestions!
Best,
Trina
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♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Hi Lisa,
The state nonresident allocation worksheet near the bottom of the federal information worksheet was a good place to send me. However, that did not fix the problem, even after entering that $0 of the capital gain was taxable to PA. Do I have any other options besides overriding the PA Capital Gain form to generate zero capital gain taxable to PA?
Thanks!
Trina
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♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Hi Lisa,
No unfortunately PA is truly taxing the full capital gain even though the taxpayer is full year non-resident and not subject to PA tax on this capital gain.
Sounds like I may need to do overrides since this is a ProSeries glitch and I know the correct tax result I need...
Best,
Trina
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Had the same problem. Almost pulled out the little hair I have left.
In addition to entering $0 Capital gain or loss on the Federal Nonresident State Allocation Wks (PA), you must also go to the PA state return (PA-40). On the PA return, open Schedule D, Schedule of Gains and Losses, and mark the left column of checkboxes (*Not PA).
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Trina, as others have hinted, you go to the WORKSHEET in the PA 40 return (not the actual Sch D in the return) and on the far left, you click the box that says the specific capital gain is not taxable in PA. I just did it.
Bonnie