Kentucky return with one spouse a Florida resident

[Blackjackbimmer]

How do I complete a Kentucky return in ProSeries Basic when one spouse is a Kentucky resident and the other is a Florida resident?  It appears that I can't do it from their joint federal return and I will need to do separate Kentucky returns but I'm not sure how to do that.

[Camp1040]

Need more info. Both TP have KY source income? Do they live apart? Have you tried PY/NR allocation worksheet?

[Blackjackbimmer]

Husband made Florida his residence in December 2023.  Car is registered and voting registration are in Florida.  He has a house in Florida and spends the majority of the year there.  Unfortunately, his employer didn't make the state change until after the first payroll of 2024 so he does have some Kentucky sourced income.  The wife maintains her home in Kentucky and lives there full time.

I have looked at the PY/NR worksheet but it doesn't appear to allow for only one being nonresident.

[Accountant-Man]

You might need to split MFJ in Proseries on the File menu at the top of the Info Worksheet.

[sjrcpa]

It's not KY source income if he didn't earn it in KY.

[sjrcpa]

What do the KY Instructions say about spouses who live apart?

[Blackjackbimmer]

Program throws an error when checking the married filing separate box on Kentucky.  Program does not support a joint federal return and a separate Kentucky return.

[Blackjackbimmer]

The employer reported some Kentucky income and withheld tax.  Thereby, making it Kentucky source.

[Camp1040]

Maybe a W-2C is in order to fix this, since it sounds like a payroll error.

[Blackjackbimmer]

Small amount of Kentucky income is not the problem.  The program not allowing the spouses to file different residency is.  I'd have the same problem without the small amount of income.

[sjrcpa]

"The employer reported some Kentucky income and withheld tax.  Thereby, making it Kentucky source."

Maybe.

Or maybe employee didn't inform his employer about change in residence until after the first 2024 paycheck or two.

Back to your question - first you need to find out how KY wants this filed. Then you figure out how to do, or not do, in the software.

[Blackjackbimmer]

It appears that they must file separate returns.  So the state returns must be filed on paper since the software does not allow joint federal and separate state returns.  From research, Turbotax does have a work around but not ProSeries but it still requires mailed returns.  They do have a Kentucky rental property which makes it even more complicated, if not for that I'd just file separate federals too.

[Accountant-Man]

I gave the answer two hours ago.

[Blackjackbimmer]

Actually, no.  There isn't a way to accomplish it in the program.  There is no way to split the MFJ to get it to prepare separate state returns.  The programmers didn't account for this type of situation.  

[Terry53029]

I don't think you can do it in BASIC. you can get Pro on a pay per return