@BillM223 Hi Bill, thanks for your reply & offer. Before we go that route, I did a bit more research.
The instructions are below.
One return in question has taxable income of 250,773. The calculation of ((250,773-12000) * .00228 ) + 21 = $565 which is what TurboTax calculated.
The other has taxable income of 317,662. ((317,662-12000) * .00228) + 21) = $718 which is also what TurboTax calculated.
It seems very strange that the credit goes away for married/jointly with taxable income > $500K, but I think this is correct, no? Am I missing something?
I am doing this return for my daughter & her husband, and have no experience with NYC credits, and I've also never done married filing separately so I very much appreciate your support & patience.
UPDATE: I prepared a "fake" tax return with a fake w2 and nothing else, and it did a similar calculation. Taxable Income was $292,000. The credit was $659 which is what I expected based on the formula.
Brian
https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf
Calculation of NYC school tax credit (rate reduction amount) for single and married filing separately |
If city taxable income is: over but not over | |
$ 0 $ 12,000 12,000 500,000 | .171% of taxable income
$ 21 plus .228% of the excess over $12,000 |
