Solved

NY nonresident wage allocation for income earned outside of NY

Forum|Forum|4 years ago
April 13, 2022
1 reply
0 views

I live in NJ, and work in primarily in NY and understand I have to pay NY income taxes as a nonresident.

My job occasionally requires travel outside of NY.

My W2 shows the income amounts earned in each of these states along with the corresponding state tax withholdings.

The NY income amount of course still matches my federal taxable amount and there fore includes the amounts earned outside of NY.

When completing the NY nonresident form, can I adjust my NY income to account for the income (from my NY job) that was earned outside of NY?

Or does NY require that I pay tax on the full income?

Best answer by MAK70

That is exactly right, subtract out income earned in other states. Since it is on your W2, you have a record, if it were not on the W2 you would have to manually calculate based on days. @GeorgeAndGracie

M

MAK70

Yes, you can make the allocation of New York income on your nonresident tax return.

G

GeorgeAndGracieAuthor

So, then I guess basically I should subtract out the non-NY income from the NY amount reported on the W2, then use that to calculate what the overall NY percentage is and then use the "Allocate by Percentage ' option in Turbo Tax

Example, W2 shows 10,000 in NY income but I also show GA income of 1,000 (income from the same job but actually earned outside of NY). I can then adjust my NY nonresident wages to be 90% of the stated W2 amount, which results in me being taxed by NY for 9,000 instead of 10,000.

I hope I have that right.

Thanks for the help.

M

MAK70Answer

That is exactly right, subtract out income earned in other states. Since it is on your W2, you have a record, if it were not on the W2 you would have to manually calculate based on days. @GeorgeAndGracie