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Did I allocate income based on business?

I did an internship in New York in 2017. I received a 1099-Misc, and reported that already. I also had freelance income, which I put on a separate Schedule C. TurboTax asked me how much of each chunk of self-employment income was from New York, so I said 0% of the freelance work (I was in a different state), and 100% of the internship income. Now it's asking me if I allocated it based on volume of business transacted. I have no idea how to answer. I just allocated based on which Schedule C goes with which US state. Any ideas? Thank you!
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Accepted Solutions
DanielV01
Expert Alumni

Did I allocate income based on business?

No, you did not allocate based on business.  This is an allocation method based on the percentage of income that is earned in NY vs. another state.  In your case, you are simply state which income you earned where, there is no allocation method involved.  In addition, allocation is based on salaries and wages, as compared to self-employment (which is what you are considered to be as a contractor). 

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1 Reply
DanielV01
Expert Alumni

Did I allocate income based on business?

No, you did not allocate based on business.  This is an allocation method based on the percentage of income that is earned in NY vs. another state.  In your case, you are simply state which income you earned where, there is no allocation method involved.  In addition, allocation is based on salaries and wages, as compared to self-employment (which is what you are considered to be as a contractor). 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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