Question

Can't e-file NY state taxes

Forum|Forum|4 years ago
March 8, 2022
1 reply
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I teach in NJ and my husband works in NY.

When I try to file my NY non-resident state return, I am told that I cannot e-file due to a 414h in box 14 on my W2.

How can I fix this so that I can e-file in NY? The 414h should have no bearing on NY state tax since I work only in NJ.

K

kl2022Author

I would like to e-file as I have a return coming.

DMarkM1

Your 414h contributions in NJ do have a bearing on your NY tax returns. NY uses all income to compute the NY tax on the NY source income.

The NY non-resident form starts with your federal adjusted gross income makes any NY additions/subtractions to arrive at NY "taxable income"

The NY source income as you allocate on your return is then divided by that NY taxable income to arrive at a percentage of your total income that belongs to NY.

That percentage is then multiplied by the NY tax on all income to arrive at the percentage of NY tax that is from NY sources.

Here is an example. FED AGI - 10,000 NY addition 2000 for 414h contributions; total NY taxable income - 12,000

NY allocated income is 6000. 6000/12000 = .5 NY tax on 12000 is $200; multiplied by the income ratio (.5) = NY tax on NY income $100.

You will need to select the "NY 414h subj to NY tax" option in the box 14 dropdown menu. Then be sure in the NY interview you have only allocated your NY income to NY.

This should allow the e-file and correctly calculate your NY taxes.

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