Unlike individual returns, where each income item or deduction can be directly allocated to a certain state, partnerships, S-corporations, and corporations are required to use apportionment to calculate their returns. While apportionment factors vary among states, in general, the program calculates the following apportionment factors from their respective input screens:
- Property Factor - Depreciable assets, balance sheet totals, and deductions
- Payroll Factor - Deductions
- Sales Factor - Income
For fields used in apportionment, this is how you can use the state identifiers:
- Select the + sign to open the Allocate Multi-State Amounts option.
- Pressing Ctrl+E while the input field is active will also open the Allocate Multi-State Amounts option.
- Enter the Amount for each state.
- In the State column, select the state abbreviation.
- For states with no income tax, like Texas, choose US.
The partnership, corporate, and S-corporate modules only allow you to assign state identifiers for items that apply to apportionment factors.