Thanks Terri - this is interesting as I paid to have the turbotax expert go through the return and they agreed that TT was advising correctly to deduct the property tax as an itemized deduction for NY even though I live in NJ. The expert could see that I was filing a non-resident NY return (work) and resident NJ return (where I live). There seem to have been a few people here asking the same question, and several people have answered that NY honors the schedule A itemized deductions - allowing NJ residents working in NY to claim the deduction and even asking them to itemize when they do not itemize on the federal return. The Q attached below is an example where the % income derived from NY is used to prorate the deduction for property tax on a non -resident return. Is the software making a mistake?
property taxes with two states and new york state itemized
when we have 2 states, say NJ and NY and the home is at NJ and paid property tax for NJ home.
I found that the NY state return itemizing include this property tax as well. Is this correct? because that property tax was paid for NJ home.
if not correct, how do I enter correctly or fix? as in federal tax section there is no section to select which state of property tax belongs to
postedlast updated April 11, 2023 9:02 PM
Yes. TurboTax is doing your taxes correctly. All federal itemized deductions are included on your New York return (that's how NY calculates taxes).
You don’t say whether you are filing a resident, part-year, or non-resident NY return.
If you are a resident, NY taxes all your income, so you can claim all your federal deductions.
If you are a part-year or non-resident, NY will prorate your itemized deductions according to the NY percentage of income versus total income. So if you earned 50% of your income in NY, you’ll get 50% of your itemized deductions.
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April 12, 2023 5:33 AM
