Can I file my state taxes separately on TurboTax if I’ve lived in two different states for 2020?
First half of 2020 I lived in Maryland and last half I lived in indiana in a current resident of Indiana. I input my state and federal taxes for both states, but it’s asking for an absurd amount of taxes I have to pay and I didn’t even make that much and was taxed to death. Is is possible to do them all separately for each state? MD and IN? Any tax specialists I should consult? Maybe TurboTax this year is a no go?
2021-01-28T05:41:52Z
If I do my Indiana returns by themselves, I get $1800 back (900 fed and $900 state) if I do my MD taxes by themselves I get $195 fed back but owe $326
If I do them together, I end up owing $2000 for both states
Anonymous2021-01-29T03:32:28Z
Your W-2 forms should show which taxes and income belong to which state.
For your state returns - you must do a return for each state. You need to report the income that was correct for each state. Simple example - if you earned a total income of $50,000 for the year and $25,000 happened in MD and $25,000 happened in IN - then you file a FEDERAL return for the total of $50,000 but you file TWO state tax returns - one for each state - claiming $25,000 for each state.
Again, that is a simplified example - but you would only be paying taxes to the state based on what you earned in that state, so you need to separate the income according to location.
Turbo Tax should be able to handle two states. You may be filling in something incorrectly.
If you're getting different results then you're making a mistake on one of the calculations.
Turbo Tax can handle and accurately compute both of your partial year state returns IF you put the data in correctly.
Before you just run off and file the returns separately, figure out where you're making the mistake. The returns should match whether you file them all at once or one at a time.
You've probably not done the state allocations properly. You should only be taxed in Maryland for what you earned while a resident there. You need part year resident returns for both states. You should get a credit on your Indiana return for some or all of the taxes you paid to Maryland. As with any computer program, the inputs have to be correct to get the right answers. You might want to consider taking your taxes to a private preparer in your area. You can find a list of ones near you on the IRS website.
None of the online tax programs do very well with returns with multiple states. Tax software and websites can only be as good as the person inputting the data. How well do you understand how multi-state issues are handled on the tax return?