How to allocate investment income as a partial year resident

croseangelica

I lived in Wisconsin Jan through end of September (9 months) and Illinois from October through end of year (3 months) I have a few accounts I've earned interest on, and one investment account that earned interest, dividends, and capital gains distributions. It was my understanding that 9/12 of this income should be allocated to the Wisconsin state return and 3/12 of this income should be allocated to the Illinois state return. I had planned on doing my taxes myself this year and had that I owed around 150 to WI and around 50 to IL. My mom checked with the guy who usually does our taxes and he allocated it all to Wisconsin. I then would owe Wisconsin almost 600 and get nothing or owe nothing to Illinois. When I told him I allocated based on the months I was a resident, he said why would you do all that work? And I'm thinking because I owe less, and it seemed like the logical way to allocate this unearned investment income. Is this the proper way to allocate it as a partial year resident?

panickyfloppy

Looks like FreeTaxUSA agrees with you:

https://community.freetaxusa.com/kb/articles/69-how-to-allocate-income-for-part-year-resident-returns?utm_source=community-search&utm_medium=organic-search&utm_term=part+year+resident+allocate

That seems like a silly thing for a tax preparer to say "why would you do all that work?". Like you said, um to do it right and not owe extra money.