Part-Year State Tax Filing

I teach a graduate level course in California and multistate taxation at San Diego State University. Each year I give my students a fairly complex part-year California individual income tax return as a homework problem. For the past 10 years or so I have run it through Turbo Tax every year just as a double check. Until a year or two ago, TT would not give the taxpayer credit for tax paid to another state on California source income earned during the period of nonresidence. Beginning in 2008 or 2009, it works and I don't have to override to get the credit.

I haven't looked at the CT part-year resident return so can't comment on that, but if the California example is any guide, I'd guess the chances are pretty good that TT will get it right as long as your input is correct. GIGO, you know . An Excel spreadsheet calculating the tax correctly as you understand the law and facts would be a good idea, though.

Katie in San Diego

Actually I have done "what if" spreadsheets for Federal and previous State taxes for about 20 years now. CT's full year is no worse than other states. The problem is CT's Part Year forms ( 4 forms and schedules just for Part Year...Yikes). All manner of special inclusions and exclusions that would make a Philadelphia lawyer weep.

Trying to understand CT's forms was brain damage enough. Trying to create a S/S would make your head explode.

I have seen some posts in other tax forums that give TT good marks for handling Part Year filings, and with your comments, I feel more comfortable using TT.

Thanks, Reed

Hm. I took a look at the forms, just for fun. I have to say I don't see anything so complicated about them, with the possible exception of the special accrual forms (12-717 A or B). The special accrual rule only applies if you moved OUT of Connecticut - not to moving in. (New York has a somewhat similar rule; California had one too, before 2001, although CA never required a surety bond.)

Otherwise, it all looks fairly straightforward to me, so I must be missing something. Just out of curiosity, can you be more specific about what seems so complicated?

Katie in San Diego

There are those of us who understand. ;-)

-- Stu

What? You don't think this is fun? Why are you hanging around here, then? LOL!

Katie