Virginia Part-Year Resident

[RitaB]

Line 5 Instructions - Social Security Act and Equivalent Tier 1 Railroad Retirement Act Benefits Enter Social Security and equivalent Tier 1 Railroad Retirement Act benefits reported as taxable income on your federal return and attributable to your period of residence in Virginia. 

My client moved to VA on 11/20/20.  Filing Status 2.  SS Benefits 33,686.  Taxable SS Benefits 28,633

On Line 5 A, I'll enter the quotient of 28,633 and 12 = 2,386, correct? 

It's strange to me that Line 10, VA Adjust Gross Income turns out to be negative for these folks, but I see that I'm subtracting the Qualifying Age Deduction twice, so ok.  

 

 

 

[Possi]

Yes, so it will come off their income. 

[RitaB]

1 hour ago, Possi said:

Yes, so it will come off their income. 

ATX put 28,633 which REALLY got it down there.  No warning that I might need to adjust since they are part year residents.  Would Taxwise warn you?  Or make the adjustment?  I know it's ultimately on me, but things like this are kinda why I gave up pencils and the carbon paper.

[TAXMAN]

Just be sure you complete the income and adjustments section of the PY. Software does a good job at getting numbers right.

[Pacun]

36 minutes ago, TAXMAN said:

Just be sure you complete the income and adjustments section of the PY. Software does a good job at getting numbers right.

For the unemployment, it is not doing a good job.

Rita,

I think you have to devide all income by 12 and use that amount (on month) as income received while a Virginia resident. Then pay attention to any subtraction for unemployment. That amount should be 100% of that 1/12 and no more than that. 

 

[RitaB]

1 hour ago, TAXMAN said:

Just be sure you complete the income and adjustments section of the PY. Software does a good job at getting numbers right.

Yes, I completed Form 1 correctly, just caught that I needed to adjust Page 1, Line 5 when Line 10 was -30,000 ish.

[RitaB]

25 minutes ago, RitaB said:

Yes, I completed Form 1 correctly, just caught that I needed to adjust Page 1, Line 5 when Line 10 was -30,000 ish.

"Yes, I completed Virginia Schedule of Income, Page 1 correctly..." is what I should have said.

[Possi]

3 hours ago, RitaB said:

ATX put 28,633 which REALLY got it down there.  No warning that I might need to adjust since they are part year residents.  Would Taxwise warn you?  Or make the adjustment?  I know it's ultimately on me, but things like this are kinda why I gave up pencils and the carbon paper.

No, no warnings at all. I had to know ahead of time, and I had to figure out the adjustment. 

[RitaB]

31 minutes ago, Possi said:

No, no warnings at all. I had to know ahead of time, and I had to figure out the adjustment. 

I guess that’s why they pay us the big bucks. I do realize all I had to do was read.