My clients (husband/wife/2 minor children) moved from CA on 7/8/23 to AZ to a home they purchased. They have established residency in AZ. While in CA they were renting.
The W-2's for (H) & (W) (employed by same employer) show CA income and AZ income in Box 16...and the sum of the 2 are greater than the income shown in Box 1.
My question is how do I enter the wages in Box 1 (Screen 10)... I've tried various options as shown in examples from Lacerte.... enter amount for CA in full, enter amount for AZ to the extent it doesn't exceed Box 1, and then enter the balance for AZ as US source. However, the income taken to the AZ State return only reflects the amount entered in Box 1 to the extent it didn't exceed Box 1. The Add'l amount I show in "State Wages. if different, does not get carried to the AZ State return.
And Finally....the income earned after my clients moved to AZ.... this can't be taxable on the CA State Income Tax Return....can it? They've extablished residency in AZ ... they have a home now in AZ., their children attend Public School in AZ...they have no interest in returning to CA! Is there a way I can limit the W2 Income to CA while they lived in CA?
HELP! I've never encountered a situation like this before and I didn't get any help when I contacted Lacerte last week.
p.s. I went through the earning statement for my clients and no surprise they show the amounts in Box 16 are not correct. However, I'll use the amounts if I can only get the #'s to flow to the Fed return, CA & AZ State returns.
Maybe this happened? https://accountants.intuit.com/support/en-us/help-article/form-w-2/allocate-multi-state-w-2-double-s...
When they add up to more than the whole, you need to learn about N and S https://accountants.intuit.com/support/en-us/help-article/state-taxes/using-source-column-understand...
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