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First 3 mo of yr I lived in CT but worked in NY. Remainder of yr I worked/lived in WA. It looks like TT is saying 100% of annual income is "NY taxable income"?

Forum|Forum|7 years ago
June 1, 2019
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Only 15k was made while I lived In CT, but worked in NY. The other 23k I made was while living and working in WA state which has no income tax. Form IT-203 Page1-2 shows my NY taxable income as 25k for line 36 (presumably this is my entire annual income minus some deductions).

Haven't finished CT state return yet, but would assume the same issue happens there.

I only designated the 15k as NY non-resident income and not the other 23k.

Best answer by DanielV01

New York does not tax all of your income. If you have reported the correct allocations, and it sounds like you have, New York will only tax the income you actually earned in New York. However, they do pretend that all of your income is taxable in New York, calculate tax on that amount, and then prorate the amount of tax to the income actually earned in New York.

On the NY return they do make it look like all of your income is getting taxed. But if you see lines 45 and 46, you will see the prorate calculation and the adjustment to NY tax.

Connecticut may well have a similar method for calculating CT tax. However, since you were a part-year CT resident, you will receive a credit for the tax you paid to NY while living in CT.

Your WA income, while factored-in to determine NY (and CT) tax, will not be taxed in either NY or CT.

DanielV01Answer

Employee

New York does not tax all of your income. If you have reported the correct allocations, and it sounds like you have, New York will only tax the income you actually earned in New York. However, they do pretend that all of your income is taxable in New York, calculate tax on that amount, and then prorate the amount of tax to the income actually earned in New York.

On the NY return they do make it look like all of your income is getting taxed. But if you see lines 45 and 46, you will see the prorate calculation and the adjustment to NY tax.

Connecticut may well have a similar method for calculating CT tax. However, since you were a part-year CT resident, you will receive a credit for the tax you paid to NY while living in CT.

Your WA income, while factored-in to determine NY (and CT) tax, will not be taxed in either NY or CT.

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