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March 31, 2025
Solved

Living in NY & PA in 2024. TurboTax keeps adding PA W2 income to NY state income, despite prior screens showing only NY W2s. Is this a s/w glitch?

  • March 31, 2025
  • 1 reply
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Spent time on a call with Turbo Tax helpdesk. Their final suggestion was upgrading to Live Advice option and see if they could resolve it.
    Best answer by KeshaH

    Typically the NY taxable income for part year or nonresidents reflects the full year income based on state law. The NY tax is calculated based on your full year's income, and then prorated based on how much of your total income was earned in New York. So when you see the NY taxable income including the PA that's correct.

     

    If you're using TurboTax desktop, you should be able to review your IT-203, page 3, lines 45 and 46 to make sure your tax is being prorated based on your income percentage. 

    1 reply

    March 31, 2025

    When you say living in NY and PA, please provide more details?

     

    Did you live in PA and ONLY work in PA and then live in NY and ONLY work in NY?  Or did you live in one state and work in the other?

    When you say it keeps adding PA income to NY, did you do an allocation of days?  Although the income is included on the NY return is it actually being taxed or is it removed?

     

    Are you filing a Part year resident return for both states?  You will see ALL of your income under the federal amount for the NY return and then you will see an adjustment on the NY State amount. 

     

    Are you using the online version or the desktop version?

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    March 31, 2025

    I am filing part year resident returns for both states.  I lived and worked in New York the first half of the year.  I then moved to PA where I lived and worked.  I have two W2's for NY, and one for PA.    In the NY State Return Section, the two NY W2's are shown, and the PA W2 is marked as "do not allocate this employer to NY".

     

    I do see all three W2's in the state return, and where only two are included.  However, at the end of the state submission, the total NY taxable income shows an extra amount that appears to be equal to PA's Local or State W2 amount  (Which is higher than Federal PA W2 amount)

    KeshaHAnswer
    April 3, 2025

    Typically the NY taxable income for part year or nonresidents reflects the full year income based on state law. The NY tax is calculated based on your full year's income, and then prorated based on how much of your total income was earned in New York. So when you see the NY taxable income including the PA that's correct.

     

    If you're using TurboTax desktop, you should be able to review your IT-203, page 3, lines 45 and 46 to make sure your tax is being prorated based on your income percentage.