Allocated Income based on Business

Forum|Forum|3 years ago
April 1, 2023
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My husband worked from home (NJ) the entirety of 2022 but his company is based in NY. TurboTax is asking several questions which I'm having trouble with and hoping for someone's help:

1. It's asking me to enter the amount of federal income that was derived from NY sources. It gives me certain numbers for interest and dividend income under the federal income. Do I just copy the same numbers into the 'NY Source Portion' column? If not, how do I figure out what amount goes there?

2. It asks me the following: "Did you allocate your income to New York based on volume of business transacted". How do know if this is a yes or No?

Any wisdom on these would be really appreciated

MAK70

If you were New York residents, in general you allocate the interest and dividends to your resident state. You can choose to allocate your income by percentage if you are able to identify what the percentages are.

Lisa9878Author

We live in NJ but my husband's company is based out of NY. So does that mean I can leave the NY Source portion as 0 and have the interest and dividends allocated to NJ?

MAK70

Yes, if you were New Jersey residents you can allocate the interest and dividends to New Jersey. For the income, if he worked from home the entire year but his employer withheld for New York, they likely applied the New York "Convenience of the Employer" test which means he has to pay income tax on all his compensation from that company to New York. You will be able to claim the credit for taxes paid to another jurisdiction on your resident New Jersey return. @Lisa9878