Question

2022 NY state tax return not deducting income earned in another state

Forum|Forum|3 years ago
February 19, 2023
1 reply
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I am filing NY state tax return for 2022 because I earned income in that state as summer intern. I also have income in Georgia state where I studied in 2022. when filing the NY state return it is adding the income earned in Georgia state to NY state income and calculating the total state tax. I think this is incorrect as I should not be taxed in 2 states for wages earned. Pls advise.

E

ErnieS0

You are not being taxed in two states for wages earned in New York if you claimed a credit for tax paid to New York on your Georgia resident income tax return.

New York uses your total income to set the base tax rate. However, you are only taxed on the NY percentage of the total base tax.

For example, if you earned $100,000 everywhere and had $20,000 in total deductions, then your NY base income would be $80,000. If the NY tax on $80,000 is $x and you earned $50,000 in NY then your part-year/non-resident tax would be 50% ($50k/$100k) of $x.