NY Tax Form IT-203 Line 18 and SSN on NY Tax Form IT-558

New York State Tax Department informed us that our IT-203, Line 19 (derived from Lines 17 and 18) , New York State amount was incorrect. This led to an incorrect New York tax calculation by TurboTax. We were billed for additional tax and paid it.

Line 19 is for the "Federal adjusted gross income". Only the New York State amount was considered incorrect. Line 19 is calculated by subtracting Line 18 from Line 17. Line 17 was correct. So the real problem, as per New York State Tax department was with Line 18.
The "Federal amount" was correct. The "New York State amount" was not. This is how IT-203 instructions describes Line 18, New York State amount: "Enter that part of the federal amount that represents adjustments related to income you received as a nonresident that was derived from or connected with New York State sources."

The clause "enter that part of the federal amount" essentially implies that the New York State amount on Line 18 could only be less than or equal to the Federal amount on the same line.

Mistake 1 (on IT-203):
**On line 18, TurboTax entered a New York State amount larger than the Federal amount**

There was another mistake. This was on IT-558, where the name and the SSN of the taxpayer are entered. The IT-558 instruction says: "if you are filing a joint personal income tax return, enter both spouses’ names and the SSN of the taxpayer listed first on your Form IT-203".

Mistake 2 (on IT-558):
**TurboTax entered, on IT-558, the SSN of the taxpayer listed SECOND on the form IT-203**