A state's apportionment formula divides nonbusiness income among the states where nexus exists.
Business income is apportioned among the states; whereas, nonbusiness income is allocated to a specific state (usually the state of commercial domicile).

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Nonbusiness income is typically allocated to a specific state, not apportioned among states. Business income is apportioned among states where nexus exists.

A State's Apportionment Formula Divides Nonbusiness Income Among the States