Why is my NY State Tax being calculated on my federal AGI, when a large portion of my Federal AGI is from CT?

Forum|Forum|4 years ago
April 13, 2022
1 reply
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I noted that my CT income was not derived from NY sources, but TurboTax does not deduct (investment gains) from my NY taxable income. I earn my income in NY, but am not a resident of the state.

TurboTax Premier Online

M

MAK70

New York calculates your tax as if you were a full year resident, then applies the tax to the New York source income only,

A

Anonymous

The problem is that I don't see the tax being applied, in Turbotax, only to NY sourced income. In Turbotax, the entirety of my Federal AGI is being taxed by NY State.

DMarkM1

As @MAK70 mentions NY uses all income to calculate the NY tax on the NY portion of your income. Neither the name used by NY, "NY Taxable Income," nor the name used on the NY summary page in TurboTax, "Income Taxed by NY" indicate the allocated NY tax.

In the NY interview click "Update" for the "Your NY numbers" section. You will find the page "Let's review your NY numbers." On the bottom half of that page you will find the tax on NY income and the allocated tax on NY income based on what you allocated to NY in the interview.

If the "allocated tax" is the same as the "starting amount," then the allocation has not be completed. Click "Back" and then "Update" for the appropriate category in the "NY Allocation" section. Be sure to put zeroes in the NY boxes if the amount does not apply to NY.

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