Question

State Income Tax Allocation

Forum|Forum|2 years ago
April 16, 2023
1 reply
0 views

I live in Colorado (and have lived in colorado for the entirety of 2022). I traveled and spoke in 2 other states (UT and WI) last year. I never lived in those states, but did earn income there for the 1-2 days I was there speaking. On the state income tax return section, especially for Utah, it's asking me to "Divide (Allocate) Income". In this section, it's asking me how much of my federal business income is allocated to Utah. When I click the "help me" it says to calculate this allocation based off of how long I lived in this state. But I never lived in this state. So should I enter 0 here? Or enter the $1500 I made for the speaking gig?

If I enter $1500, TurboTax tells me I owe $73 to Utah. If I use other online calculators, they say my tax liability should be $0. Any suggestions?

AliciaP1

You need to enter the specific income you earned for the gig in UT as UT income. You will owe some tax to UT because you earned the money while being physically in the state. If you had been in CO while you did the work to earn the $1,500, you would not owe UT anything and would not need to file a UT return.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"