Get your taxes done using TurboTax

NY - NY does tax capital gains and it should be included on your form as income. You had tax withheld to cover it and know that NY should have their share. In the NY return:

1. Review page summary
2. Locate general information section.
3. verify you selected nonresident 
4. verify who claims the income
5. Under NY income allocation
6. select nonresident other allocations 
7. enter the capital gains.
8. Take a look at your allocation worksheet to see the income is properly showing under nonresident.
9. Look at your IT 203 pages 3 & 4 to see your total income being allocated by your NY income.

MS - your resident state does tax all income earned while living there and does give a credit for the NY state tax paid.