NY law states that you must pay tax on NY source income. If you have NY source income, you pay them and take a credit on your resident state.
@kaffeinem
@anonomomIL
If you are telecommuting, working from home, for a company in NY, then you must pay NY tax on the income. NY taxes telecommuters.
If you truly do not have NY source income, you may want to put $1 just to push the return through. That way there is no tax liability.
If you should pay NY tax, follow these steps:
You will need to prepare the states in a special order. You may need to delete both states and begin again.
- First, prepare your non-resident NY return. This creates your tax liability for the non-resident state. How do I file a nonresident state return?
- THEN prepare your resident state return and it will generate a credit for your income already being taxed in the non-resident state.
- The credit will be the lower of the state tax liabilities on the same income. You may owe your resident state.
It isn't possible for the program to create a credit before it knows the liability. Your returns may be wrong if you do not prepare the states in this order.
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