I'm using 1040.com and have been for the past 3 years for my tax returns. I'm having problems this year because I moved from Hawaii to Colorado in 2019. For 2019, I am a resident of Hawaii and part-time resident of Colorado. I have W-2 income for both Hawaii and Colorado. I also have rental income for both Hawaii and Colorado.
Based on the 1040.com program, I have to pick one state, which is Hawaii. When I enter all of my information at once, I have too much tax going to Hawaii and not enough going to Colorado. My solution is to run my taxes through the program 3 separate times.
First Run: I only include Hawaii income and come up with the Hawaii Tax due. Send paperwork to Hawaii.
Second Run: I only include Colorado income and come up with Colorado tax due. Send paperwork to Colorado
Third Run: I run it with everything to come up with Federal tax due. I only send the federal paperwork. I ignore the state paperwork.
When I run it the 3rd time for federal, the state numbers are not correct. I have too much going to Hawaii and not enough to Colorado. For example, when I enter income for a Colorado rental property, my Hawaii state tax due goes up because it is my default resident state. However, does that matter if the state numbers are off when just submitting the federal return?
