Allocating income for multi-state returns in ProSeries

ProSeries usually calculates the tax credit offered by a resident state on nonresident income automatically, so manual entry for other state tax credits may not be required on the resident state return. The program flows nonresident amounts from the nonresident state return(s) to the resident state return when you switch between state returns.

If you're filing a part-year or nonresident multi-state return, you need to complete the steps below for the Federal Information Worksheet prior to generating the state return(s) to make sure that each return is accurate.

Follow these steps to allocate income for a multi-state return:

1. Go to the Federal Information Worksheet.
2. Locate Part XI - Part-Year and Nonresident State Return Filing Information Only.
   • This was Part X on the Federal Information Worksheet in prior years.
3. Complete the applicable part-year or full-year resident information.
4. Click the QuickZoom button for the applicable Part-Year Resident State Allocation Worksheet or Nonresident State Allocation Worksheet.
   • Alternatively, you can press F6 on your keyboard to access the Open Forms dialogue box, select All Forms and type "PYA" for the Part-Year Resident State Allocation Worksheet or "NRA" for the Nonresident State Allocation Worksheet.
5. Complete the applicable worksheet.
6. Complete the federal return to ensure accuracy prior to completing the state return(s).
7. Prepare the client's nonresident state return(s).
8. Complete the client's resident state return.

Follow these steps to allocate income for a part-year resident:

1. Go to the Federal Information Worksheet.
2. Scroll down to Part XI - Part-Year and Nonresident State Return Filing Information Only.
3. Enter the State of residence as of 12/31/YY.
   • YY represents the two-digit tax year.
4. Mark the checkbox labeled Part-year resident.
5. Enter the If part-year resident, date residence established field.
6. Enter the Former state of residence field.
7. Click on the QuickZoom to Part-Year Resident State Allocation Worksheet.
8. Complete the worksheet.

Follow these steps to allocate income for a nonresident:

1. Go to the Federal Information Worksheet.
2. Scroll down to Part XI - Part-Year and Nonresident State Return Filing Information Only.
3. Enter the State of residence as of 12/31/XX.
4. Check the Full-year resident box.
5. Mark the checkbox labeled Nonresident State Filers.
6. Enter the State ID in the table below next to the Nonresident.
7. Click on the QuickZoom to the Nonresident State Allocation Worksheet.
8. Complete the worksheet.