Report your W-2 exactly as it was prepared for you.
Yes, what you are seeing
is accurate, but NYS (or NYC) is not taxing the income you made before you became a
resident.
Your total 2016 pay appears in the NY forms, summaries and
interviews because NY uses your
entire AGI to calculate your tax on NY income. They
do this even if you were a resident of New York for 1 day
It isn't, however, as bad as it appears. They
calculate what your New York tax would have been if you earned everything in
NY, but then prorate that tax
based on how much of your income was earned while a NY resident.
For example, if the NY tax on your entire 2016 income was
$10,000 but only 30% was earned as a NY resident, your NY tax would be 30% of
$10,000 = 3,000.
Why do they do this? So
they can tax your NY income at the highest possible tax rate, based on your
entire AGI.
