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1040 States

Allocate income to states in the state allocation spreadsheet (for C, E, F, and 4835 screens)

Allocation methods

You can use the following 2 methods (percentage or amount) of allocation to allocate federal net income to the states in the State allocation spreadsheet.
note
  • Amount fields that apply to 1 state may not apply to another.
  • Amount fields that don't apply to a particular state are turned off (shaded).
  • Amount fields that aren't shaded are considered enabled for the applicable state.

Percentage

  1. Enter a percentage (in
    XXX.XX
     format) in the 1st field available on the State allocation spreadsheet.
  2. Select the state this percentage applies to from the dropdown.
  3. Select
    Apply
    .
note
  • UltraTax CS calculates the amounts attributable to that state and displays the amounts in the spreadsheet.
  • The percentage entered for that particular state appears after the state name for easy reference.
  • If turned on, you can replace individual item amounts on the spreadsheet from the calculated amount.
  • Carryover amounts aren't multiplied by the percentage. You can enter them individually.

Amount

In cases where a percentage of the federal amounts doesn't apply, you can enter individual item amounts, if turned on, on the spreadsheet for the state.
Zero
 (0) is a valid entry and will prevent the state amount from defaulting to the federal calculated amount.
If you leave an individual item amount field blank, the federal amount, if present, is used in the state's calculation.
note
If you enter Ohio amounts instead of a percentage of federal, you'll need to make further data entries. In the Ohio system, go to the
BusApp
 screen in the
Income and Adjustments
 folder. For the purpose of calculating Form IT-2023, you'll need to enter either an Ohio apportionment ratio or the factors for apportionment of business income.

Build-up states

For Build-up states that report or otherwise calculate income from these Schedule C, E, and F and Form 4835 activities on an amount-by-amount basis, you can only use the percentage allocation method.
You can allocate passive carryover amounts by entering the state-specific carryover amounts within the State allocation spreadsheet.

Other states

For other states (typically AGI states that need net activity amounts only), you can allocate by using percentage or by entering the net amount of activity income or allowable loss attributable to the state.

Notes

  • Passive activity carryover amounts are turned off for AGI states except Kentucky, Montana, New York, and Oregon.
  • New York
    : Amounts that you enter for part-year resident and nonresident New York taxpayers are used to complete Form IT-182, Passive Activity Loss Limitations, basis and at-risk worksheets. Only New York source amounts are used to complete Form IT-182. Therefore, the calculation may differ from federal Form 8582.
  • Montana
    : Enter Montana-sourced passive activity losses in the State allocation spreadsheet.
  • Kentucky
    : Enter Kentucky-sourced passive activity losses, basis, and at-risk amounts in the State allocation spreadsheet.
  • Connecticut
    : Enter Connecticut-sourced passive activity losses and basis amounts in the State allocation spreadsheet.
You can print the State allocation spreadsheet in a report format for future reference. Select
Print
 or
Preview
 on the the spreadsheet.
note
If licensed, you can also print to FileCabinet CS.

This article applies to:

  • PRODUCT: UltraTax CS
  • Return type: 1040 Individual
  • State: All states,Alabama,Alaska,Arizona,Arkansas,California,Colorado,Connecticut,Delaware,District of Columbia,Florida,Georgia,Hawaii,Idaho,Illinois,Indiana,Iowa,Kansas,Kentucky,Louisiana,Maine,Maryland,Massachusetts,Michigan,Minnesota,Mississippi,Missouri,Montana,Nebraska,Nevada,New Hampshire,New Jersey,New Mexico,New York,North Carolina,North Dakota,Ohio,Oklahoma,Oregon,Pennsylvania,Puerto Rico,Rhode Island,South Carolina,South Dakota,Tennessee,Texas,Utah,Vermont,Virgin Islands,Virginia,Washington,West Virginia,Wisconsin,Wyoming

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