Mike12321
Level 4
 
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Just-Lisa-Now-
Level 15
Level 15

Resident state will most likely tax all income...is this what youre asking?

Or did they sell the house in the non-tax state, then move out of that state?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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Mike12321
Level 4
Yes they sold the house in the non-tax state - so I was hoping that we could escape tax on the sale, there was unrecaptured 1250 gain.
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Just-Lisa-Now-
Level 15
Level 15
So you're only doing  a part year return for the state they moved to, right?  That income while in the state without tax shouldn't be taxed in the new state.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Mike12321
Level 4
Yes!!! Thanks so much for confirming what I thought. --And answering so quickly.
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Just-Lisa-Now-
Level 15
Level 15
Use the part year allocation worksheet at the bottom of the federal information worksheet to allocate the income to the correct states.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Mike12321
Level 4
Thanks again! I have previously allocated income per months lived in each state for some income, so I believe I can do that again for RR pension, social security etc that doesn't indicate a state on the 1099.
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