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February 23, 2020
Question

Moved from NY July 2nd to NC. I stayed w/same employer, just differ. branch. I need help determining wages but confused as I deducted nc wages from total income to get NY

  • February 23, 2020
  • 1 reply
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When I do that, it says I owe over $700 to NY, but I don't owe them. Total wages 68981.  Nc wages 22387. NY state wages says 68981. I think NY w2 should read 46594.  We put that in but it's not calculating right.

1 reply

DaveF1006
February 23, 2020

Sometimes the way that NY State report income is confusing. NY state employers often report TOTAL wages earned by the NY employer and then report wages earned in another state.  It is your responsibility to separate this on your tax return.  Before you begin your state returns, make sure you have recorded the information in MY INFO to make sure that Turbo Tax will report your state income allocations correctly to ensure your are being taxed for the correct income in both states. 

 

in your particular case, you need to prepare a NY State part-year resident return FIRST and then your NC return. 

 

  1. As you scroll and answer the questions in your NY return.  You will come to a page that says New York Income Allocation.  Select NO at the bottom of the screen.
  2. Next screen will be an W2 income summary screen. Select your NY -based employer W2 Select Edit>Allocate Wages to New York>I would allocate by percentage of time spent living in NY versus the time spent in NC.
  3. As you scroll through the screens, you will come to an entry that says tell us about your New York resident income then it will ask you how much of the $68981 income you earned in NY. Here is where you put $46594
  4. If you have other income in your return, it will ask you to allocate other income items that are in your return.
  5. Keep in mind, if you lived in NYC or Yonkers, there is also City Taxes that are factored in the return. If you lived in NYC, you will need to allocate income in that section also.
  6. as you go through your NC return, you should reach a wage allocation section that will summarize your W2 income and should separate your NC income of $22,387 and then the remainder to non-NC-sourced income.

if you follow these steps closely, you should get the right amount of allocation to NY and NC. 

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